I do wish for Nostr to, maybe not solve, but at least address other issues, primarily corporate censorship.
Companies often censor content which is absolutely legal. It's also legal (and one could argue moral) to censor content, since they own the servers, but we have the right to reject their role and power as middlemen and Nostr can address that.
Government censorship and violation of basic civil rights (such as the non-retroactivity of laws) isn't a technical problem, it's a political problem which can't really be solved by just nerding hard enough.
> When the state acts against the will and the best interests of the people, do we have democracy?
In some cases yes, but not if it violates fundamental human rights.
Democracy isn't about having perfect laws, or maybe even good laws, it's about empowering the people (not just the majority of them, all of them).
Fundamental human rights such as democracy, the right not be prosecuted for what wasn't illegal at the time of the act and the right to influence political decisions are all that democracy is. There is nothing more and nothing less to democracy than that.