Political correctness and basic decency are not the same thing. Suppression of dissident views is not something that democracy does through promoting basic decency. The term PC is not a valid basis for argument, because it is only used pejoratively to complain that bigoted views are not socially or institutionally accepted (which is pretty funny, because they very much are across the vast majority of institutions and social groups). Using non-discrimintory, non-exclusive, non-bigoted terms for other human beings and how they live their lives is not fundamentally political, or at least, it isn't any more political than anything else we do. It's not about being correct, it's about being inclusive and decent.
Democracy cannot be "pushed to absurd levels" because it doesn't work that way. There is no "level" of democracy or democratization that could be considered absurd. Additionally, the basic conception of who the minority are is wrong, as is the basic conception of the majority. It's not that unusual, most conceive of these ideas in a fundamentally erroneous and unproductive way.
Being a prick and then saying that you "dislike" political correctness is not the result of democracy masquerading as fascism, but intolerance masquerading as freedom.
A more correct way to talk about this would be that we do not democratize our society effectively enough. Where we once saw the monarch as the abstraction of the body politic, we have instead abstracted the body politic into a fucking survey. Democracy shouldn't just be filling out a bubble on a ballot, nor should it be majority rule, but when the survey is given power, the language it uses becomes political. There is no "correct", there is only recognition of the other as a critical subject, someone who feels and thinks and who reflexively images themselves just like you do, based on all outward forms of communication, including speech and written language. When the survey legitimizes some people and leaves out others, it is exclusive. Language should be changed. If that language, in turn, is also exclusive, it should be changed again. There isn't an end to it, it'll go on forever, because we go on forever, and language is just a part of us.
So when people say "where does it end?" They are asking the wrong question. That should simply be asking, "how can we do better?"