It isn't necessarily the case that proportional representation will result in minority governments all the time, though that is likely to be much more common.

There have been elections in Canada where one party received more than 50% of the vote.  The most recent example, Federally at least, was in 1984 when Mulroney's PCs won just a hair over 50%.  Provincially it has happened more often, albeit usually in Provinces where only two of the parties are seen as "legitimate contenders" (eg. Saskatchewan where the Liberals, Greens, PCs and all others received less than 10% of the vote between them).  There are also various versions of "proportional" that might lead to more seats than a straight-up vote percentage.

As for "how democratic", that is a legitimate question.  All methods of electing representatives are, by definition, a proxy for actual democracy.  None of the systems are fully democratic and all have their drawbacks.