I'm curious as to your point of view.
How does liberty mean man deciding what is right and what is wrong?
It doesn't. It has very little to do with it.
Democracy doesn't equate to freedom. There is no inherent right that the 51% has over the 49%, and indeed, as Jesus said, the majority is evil (Matthew 7), and thus, when evil holds the majority in a democracy, they hold power over the, generally speaking, innocent minority. Maybe you can spot the problem with that.
Authority naturally flows downhill. From God to the government, to the people, from the individual man, to his wife, to her children, and even the kid can kick the cat off the couch.
Democracy, on the other hand, reverses that flow, and tries to put the people over the government, which is over the people, which is over the government, which is.... Etc. Circular authority flow functions the same as circular reasoning: it's illogical, and worse, it subverts the natural flow of authority established by God.
I don't see your path to that unless you associate law and morality as being one and the same. They are not.
God's law is moral. Love God, and Love thy neighbor as thyself. Any law that violates those two is no law at all. Democracy, as stated above, allows for the evil majority to establish their preferred laws, which are guaranteed to violate them, as a natural outcome of democracy.
As to man choosing leaders:
God and Moses allowed the people to choose who would be their leaders and help govern them.
WRONG.
First: Numbers 16. Read it. God opposed democracy, so much so that He caused the earth to swallow up the people who were involved in the rebellion.
Second (pardon the pun): Deuteronomy is a second retelling of the law. In chapter 1 verse 12, Moses is recounting when he appointed JUDGES to ease the burden he had in determining the outcomes of cases. Literally all you had to do was keep reading:
“And I spoke to you
at that time, saying: ‘I alone am not able to bear you.The Lord your God has multiplied you, and here you are today, as the stars of heaven in multitude.May the Lord God of your fathers make you a thousand times more numerous than you are, and bless you as He has promised you!How can I alone bear your problems and your burdens and your complaints?Choose wise, understanding, and knowledgeable men from among your tribes, and I will make them heads over you.’And you answered me and said, ‘The thing which you have told us to do is good.’So I took the heads of your tribes, wise and knowledgeable men, and made them heads over you,
leaders of thousands, leaders of hundreds, leaders of fifties, leaders of tens, and officers for your tribes.“Then I commanded
your judges at that time, saying,
‘Hear the cases between your brethren, and judge righteously between a man and his brother or the stranger who is with him.You shall not show partiality in judgment; you shall hear the small as well as the great; you shall not be afraid in any man’s presence, for the judgment is God’s. The case that is too hard for you, bring to me, and I will hear it.’And I commanded you at that time all the things which you should do. - Deuteronomy 1:9-18
http://www.biblegateway.com/passage/?search=Deuteronomy1:9-18&version=NKJV
Moses is referencing Exodus 18, where his father-in-law, who is honored in this passage for being one of the most brilliant men in history concerning judicial theory (at least in my opinion), came up with the entire idea mentioned in Deuteronomy 1!
And so it was, on the next day, that Moses sat to judge the people; and the people stood before Moses from morning until evening.So when Moses’ father-in-law saw all that he did for the people, he said, “What is this thing that you are doing for the people? Why do you alone sit, and all the people stand before you from morning until evening?”And Moses said to his father-in-law, “Because the people come to me to inquire of God.When they have a difficulty, they come to me, and I judge between one and another; and I make known the statutes of God and His laws.”So Moses’ father-in-law said to him, “The thing that you do is not good.Both you and these people who are with you will surely wear yourselves out. For this thing is too much for you; you are not able to perform it by yourself.Listen now to my voice; I will give you counsel, and God will be with you: Stand before God for the people, so that you may bring the difficulties to God.And you shall teach them the statutes and the laws, and show them the way in which they must walk and the work they must do.
Moreover you shall select from all the people able men, such as fear God, men of truth, hating covetousness; and place such over them to be rulers of thousands, rulers of hundreds, rulers of fifties, and rulers of tens.And let them judge the people at all times. Then it will be that every great matter they shall bring to you, but every small matter they themselves shall judge. So it will be easier for you, for they will bear the burden with you.If you do this thing, and God so commands you, then you will be able to endure, and all this people will also go to their place in peace.”So Moses heeded the voice of his father-in-law and did all that he had said.And
Moses chose able men out of all Israel, and made them heads over the people: rulers of thousands, rulers of hundreds, rulers of fifties, and rulers of tens.So they judged the people at all times; the hard cases they brought to Moses, but they judged every small case themselves. - Exodus 18:13-26
http://www.biblegateway.com/passage/?search=Exodus18:13-26&version=NKJV
Third: There is a MUCH BETTER way to choose leaders, especially considering our current method here in the US, which pits wife against husband, brother against brother, neighbor against neighbor, and wastes billions of dollars that could be spent in far better places than in political campaigns.
Proverbs 18:18 says:
Casting lots causes contentions to cease, And keeps the mighty apart. - Proverbs 18:18
http://www.biblegateway.com/passage/?search=Proverbs18:18&version=NKJV
As for that, see my pinned thread titled "Constitutional Monarchy" in the Politics section.