Maybe some day the average citizen of this nation will be informed and intelligent enough to participate in a functioning Democracy. Until then politicians will continue to manipulate the misinformed masses and throw around the word Democracy to make the plebs feel as though they matter.
The US is actually one-half mandarinate (rule by a permanent government comprising the civil service and academia) and one-half spoils-system kleptocracy (rule by organized factions who get the government to give them money or favorable law). Elections are used mainly as a legitimacy mechanism. You can think of them as almost a religious ritual, like taking communion. Elections are a way of giving people an illusion of control, and of proving overall buy-in in the system, while in reality popular influence is kept quite limited.
(Actually some states do conduct ballot initiatives, which are a form of direct democracy, as well.)
Within the boundaries of each state, there are state-level elections. In some state-level elections, like California, citizens of that state can vote directly to pass or repeal certain laws. This is a form of direct democracy.