The church and state arguments were based on the situation in England at the time of the Federal convention. The state had created its own church and the church had seats in Parliament. There should not be that kind of tie between church and state, but the separation need not be a wall of infinite thickness and height.
Actually, if you read relative papers, including the letter to the Danbury Baptists by Thomas Jefferson, the "wall" referred to so often in recent years only meant that Congress could not regulate individual states' religious affairs. Individual states, according to writings at the time, were free to conduct their own religious affairs including establishing State churches.