> How about if your neighborhood wanted to keep out people of a certain ethnicity instead? Is that a democratic outcome that we need to respect?

Come on, you know that's not analogous.

> It does not mean that every single decision in society is up for a vote at the local level.

It also doesn't mean "any policy the voters want, as long as long as it's the one I want."

Nowadays, when people bring up examples like you did above, it's usually part of an attempt to shut down democratic decision making, by making false comparisons.