I have seen this argument advance for what is wrong with Islam. With no central authority each imam is can declare a fatwa on any one they wish.
There's a lot wrong with Islam. But the main thing is that it's rejected Jesus as the Son of God and in so doing they have rejected God's plan of salvation.
No form of governance is going to rescue that religion. Were it more democratic and more reasonable it would just simply be that much more insidious. At least now there's a much clearer line between Christianity and Islam.