Your definition of theocracy is unique. A theocracy is merely the inseperability of a government and a religion. It doesn't have to be a valid religion.
I can't help it if the language has been hijacked. The original definition involved direct rule of the people by the Diety....no local intermediary of men. That's what Josephus meant when he first used the term. Leave it man to redefine the term to eliminate the Theos from the word!
Not to Christians.
We are all looking forward to that perfect theocracy to come, and we know it won't be instituted by the hands of mere men.