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I don't think socialist democracy sounds crazy at all. Just look to Sweden. They have a fully functioning democracy. So does Canada, and Canada has some very strong elements of socialism running through its political system.
Neither Sweden nor Canada is purely socialist but I would argue that there are no nations that are purely "capitalist" either. All are tempered by some form of government regulation or intervention.
It's just where any given system sits on the continuum between liberty and equality. Some lean towards more equality and others towards more liberty. As always, it's in the balance of the two that you will see the most success.
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"My hands are on fire. Hands are on fire. Ain't got no more time for all you charlatans and liars."
- Old Man Luedecke
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