What do you mean? It is small in terms of population size, it is a high-trust country (https://ourworldindata.org/grapher/share-who-trust-governmen...), it has had the highest democracy index in the world every year since 2010 (https://en.wikipedia.org/wiki/Democracy_Index), it has many political parties and there have been coalition governments for many years?

Yes, it is a constitutional monarchy which was introduced by vote, and given its support in the population, removing the monarchy would be quite undemocratic. One of the more radical parties in parliament has raised the issue many times; in 2019 their suggestion to abolish the monarchy got a record of 36 votes in parliament (against 130)