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Divide & Conquer
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That doesn't mean the correlation is irrelevant. The fact is, not a single one of the top ten democracies on the planet today have populations above 20 million. Not a single one. Source. I don't necessarily know why that is, but it is.
I don't think modern global capitalist civilization will peacefully transition to social democracy, or democratic socialism, whatever you want to call it. I think the capitalist global economy will continue growing until we hit some hard limits to growth, at which point it will collapse, which could be sooner than most realize. It's not going to be pleasant. Global population could decrease significantly, average life expectancy could decline, as could total global industrial output and average living standards. Who knows what will come out on the other side of that.