"In reality the 40% still can have their preferred cake. Even though it lost the election, they may still eat it or buy it. The problem occurs when it ceases to be baked or available for consumption. "
This is indeed true and brilliantly put. Fortunately/Unfortunately we have a lot of systems where the Cake ceases to be baked or is not available for consumption when it doesn't become a part of the majority within a given time frame.