The philosopher sets out a contrast here. In the first sentence, they note that the worst types of government are those that concentrate power in a small group of people, or "the hands of a few." They then note that since democracy is always mediocre (and thus better than the worst possible government), democracy is better than the previously mentioned systems of rule by a small group of people.
The line in question is stating that democracy is a better choice than to be ruled by a small group.