That could be a way to look at it, but on your Z access, what do you do on that axis with total freedom of religion? Is it between Monotheism and Atheism? Or is it just part of a general level of freedom? Our country was nearly 100 percent Christian for 200 years, and with very little government coercion. It was societal and cultural.
Darn it I spent almost 20 minutes on this and I am not sure this schema can accomodate all the different view points.
However, I think you may be right that it is better to analyse it along the lines of religious freedom allowed by the political system instead of the actual religious system.
That would be for another graph.
We are still in sector 1, the Blue sector!