The guy is not criticizing democracy, and he is not saying democracy can't work with islam. He is basically criticizing sharia as a governing principal and is in favor of the spread of democracy in the region. This IS a stunning statement, but not because he thinks democracy can't work in islamic nations.
I think you need to reread the article because he most certainly said they were not compatible. If not, Bruce Tefft, the former CIA employee and Middle East expert quoted in the article certainly said as much.