It's not that they don't want democracy, they simply don't know what's democracy. They're like those people who can't imagine a world without MS windows and Office, they don't know there're alternatives out there. They think two party politics, freedom of speech will disrupt social harmony. They've always lived under one party rule, to them CCP=Government=State=China. Yes, people are happy, because the economy is doing well, they think the government's done a great job. They don't realize they were also piss poor under same communist party, and it took this party some 40 years and a few big blunders to realise communism doesn't work. And realistically, people know there just won't be a second party, there's no alternative, whatever the failings of the CCP, you just have to put up with it and hope things will get better.
But the situation with censorship is a bit different. Chinese people love the internet, we all do. But to them it's also the window to the outside world. Before the Olympics, they enjoyed more freedom on the internet, China seemed to be opening up. Now they feel something is being taken away from them, freedom and connection to the outside world, they don't like it. They probably have never thought about fighting for democracy seriously, but they do want Google, Youtube, Twitter, Facebook, they use proxy and VPN to get around the GFW. There's no demand for full democracy, but there's resentment towards censorship.
Interesting comment about Hong Kong, a lot of Chinese think Hong Kong is part of China now, you guys have to obey the same rules. They just don't understand a lot of Hong Kong people detest CCP and we REALLY DO HAVE different laws and they're not subject to CCP's whims.