Oh believe me, I would much rather live in a world run by Jerry Falwell than Ahmaninejad. Doesn't mean I can't pick a third option and doesn't mean that "theocrat" isn't a technically correct term.
Theocrat "technically" means a government like that of Israel under the "judges" or under the priests and religious leaders of the Jews after the return from exile, or it could mean something like the extreme claims of the medieval popes, or a place like Zwingli's Zurich or Calvin's Geneva, or "the Puritan Oligarchy" of New England, or Utah under the Mormons. In each case, the relgious order is the dominate power, both spiritually or materially. Just look around you and say that the power and wealth of the "religious right" is comparable. It is as laughable as pretending that George Bush is the second coming of Oliver Cromwell.