I’m very confused why Americans don’t realize the fact that their democracy is basically non existent.

System Justification Theory explains this well. People support existing structures as a way of limiting cognitive stress. Political conservatism (and I don’t just mean this in the American sense) is also a defining cause of this. This can manifest as general apprehension towards radical systemic/social change.

System justification theory - Wikipedia

But this isn’t something that has existed for a long time. This has only become an issue since citizens united vs FEC in 2005