When ol' Lizzie died, the Archbishop of Canterbury let us all know that God dropped him a message to say the King Charles should succeed to the throne, which worked out awfully lucky with what was already being planned. The Head of State of the United Kingdom is claiming to derive their authority from God (aka Divine Right of Kings), state and church are officially unified and clerics are a required part of the legislature, does that not make it a Theocracy by any reasonable definition?
Doesn't capitalism require the populace to actually benefit from the "profaning" of the sacred? Like a population in a historically underdeveloped place, which is now being exposed to capitalism, is not going to abandon faith in god, if capitalism doesn't actually deliver material gains to the population group. For the islamic world specifically, I sort of think that the profaning of the sacred has already happened / begun happening, which is why you see so much weird shit being made in the Gulf States. But in places without massive bounties of exploitable natural ressources, like Indonesia, Pakistan, Egypt, or Morocco, you don't see quite the same level of "disregard" (for lack of a better and more neutral term) for the old traditions that you see in the Gulf.