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!
Sorry, the term predates Josephus by centuries on top of centuries. The first theocracies were Greek, and they were called Theokratia, from which we derive theocracy.