What forms of government might evolve from democracy in the future?

Churchill said "democracy is the worst form of government except for all the others that have been tried". The world is growing rapidly smaller, and individuals are more and more capable of forming alternative identities and joining or forming new communities through modern technology - for example communities based on interests rather than on location. We are therefore becoming able to "opt out" of long established forms of community and life. Distance and national boundaries are becoming less significant. What shape might government begin to take in the future to harness the potential gains of evolving communities, without negative drawbacks?