Vatican City is a CITY. There are churches there, but there are also offices and residences. Why is it so hard for you to comprehend that? Add to it the fact that the people who LIVE and WORK there often do so, because they MUST. If you had to live on foreign soil for your job, how would you feel about someone 5000 miles removed saying that you can’t have some small comfort because of a bible verse?
.42 square KM is hardly a city.