Governments exist on a spectrum, right? Tom and Legolas are discussing the spectrum of socialism... they are having a difference of opinion about 'how much' socialism one needs to have to be socialist, and perhaps they disagree (I suspect they would disagree, but they don't seem to be actively disagreeing, because the issue is whether any government has ever achieved it and they both would say 'no' about where on the spectrum a government would achieve communism.
So a government might take some portions of fascism (extreme government control, but not ownership of, corporations, for example) and adopt those positions. That government would be 'more fascist' than the next one over. Somewhere on the spectrum one could legitimately separate out some governments that are 'fascist enough' to be referred to as such, even if they elect their leaders.
My point to Legolas is that no one ever would. I mean, no one would elect an openly fascist (calling themselves that!) party to power nowadays. Of course people would (and do!) refer to governments they don't like as 'fascist'. Even governments that are clearly democratic!