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I certanly think the individualism/colectivism is a better dichotomy that left/right. However, individualism/colectivism is still to broad in my opinion. Both socialism and facsism are collectivist, but socialism isn't always a violent dictatorship. An example of this is Norway, where I come from. A country that have many colectivist institutions, while still being a free democracy.

Depends on what you call democracy. If you consider democracy to be some sort of "dictatorship of the majority" than yes, it is possible to have colectivist "democracies". But I don't think the majority has the right to choose to steal the freedom of the individuals.

I see. Kind of like a Ron Paul libertarian? :-)

Yes, something in those lines are the true right, individualist. Everything else are different tastes of the left, colectivisms where you try to give different "justifications" to steal the freedom of the individuals.