I'm afraid you're right. But if you trace the slide of european history from the Holy Roman empire down through Nazi Germany, you might see that disestablishment is not necessarily a good thing.
When it comes to understanding history, follow the philosophy.
Earlier - I believe on this thread - it was clearly explain what a theocracy is. It means ruled by unelected clerics, mullahs, priests, or whatever. It does NOT mean having laws which have basis in traditional morality even if some of that is based on religion.
Words have meanings, use the right ones, Drew.