going through the 3 points, and this is a friendly discussion btw, I have no intention of starting some antagonistic argument.

1. It depends what kind of hierarchies you mean. There are hierarchies all around us and in a democracy we have the benefit of spreading that hierarchy out over many layers not just a system of kings > nobles > army > peasants (for example).
2. fair enough
3. I find this entirely unfair, as it implies that power necessarily gives on an unfair advantage. What is unfair? Is it unfair for a democratic vote to provide a seat of power to one chosen by the people? Also, I find that your statement implies (though I could be mistaken) a sort of inherent evil in those who seek out positions of power. If that is accurate, I reference the many political science students who I know, they're a fantastic bunch who, by and large, want to make the world a better place through the power afforded to the public positions they long for. Also, in regards to power in the business world, it is wholly disingenuous to suggest that those with a great deal of money have an unfair advantage (talking only of those who have earned it, not their progeny) over others in a capitalist system. It is open for any and all to start a business should they so choose, of course there are many things which one would be advised to do beforehand (a business degree among them) but they are not at all mandatory. Many people have gone from doing regular old jobs to starting successful businesses and becoming wealthy, wholly without the urge to dominate the beleaguered lower classes.

sorry for the wall of text btw.