Are dreams of democracy in Egypt dead?

I have to admit that i dont really follow politics in the Arab world much however I had thought that with the Arab spring things were moving in the right direction in Egypt - Mubarak gone, promises of a new constitution, real elections for the first time ever for both a parliament and a president. Sure there were always going to be some problems but it is the direction that matters, if a country comes out with a workable constitution and a representative government then problems can be worked out and overcome.

Unfortunately it rather looks like everything is going wrong. Yes voting is going ahead for a President but it looks like whichever of the candidates is elected there will be a large number of people who are alienated and as a result the new president may not have the legitimacy hoped for or be able to bring Egypt together. However the overturning yesterday of last year's parliamentary elections by the Supreme Court seems to be much worse. Ruling that the historic vote was unconstitutional seems to be a kick in the teeth to anyone who wants a democratic Egypt and ordering a rerun is likely to anger Egyptians and make the whole concept less legitimate.  Moreover since the Court is unelected and many of its members were Mubarak appointees it is likely to be seen as a political decision. Could it cause violence?

So what are your views on the issue; Will Egypt still manage to create a functioning democracy?

p.s. I dont actually know where Egypt is on its constitution, would anyone like to enlighten me?