This is a fascinating piece, Alexander.
However, I firmly believe that your doomsday scenario is far too premature. Also you state:
"You need to imagine conflict as a staircase. The conflicting parties gradually ascend the stairs. As they go up the stairs, it becomes ever harder to descend. Because the stakes get higher".
What you describe in that paragraph is the antithesis of the Myth of Sisyphus which describes much of our existential reality — It gets harder to ascend to the Platonic Idea of the Good because of the weighty pull of the descent to human abyss. This is the problem with the corruptibility of power.
Maybe this is a minority opinion. But as tumultuous as our world is today, the darkness would most likely not lead us to another world war. The stakes for total self destruction are simply too high.
Speaking of Democracy, yes, once upon a time there was a functioning Democracy at the site of the birth of Democracy in Athens, Ancient Greece in the Golden Age of Pericles. Not sure if humanity will ever see that again.