God doesn't exist, so there can exist no theocracy.
Liberalism is the doxa of capitalism, a great assimilation machine, and liberalism in America is the biggest assimilation machine of all. Alien thoughts from abroad get quickly domesticated and rendered harmless here, as a fancy brand of pragmatism, especially in the hands of clever fellows like Richard Rorty and Stanley Fish. Foucault's thought, as well as Marx's and Nietzsche's, is essentially illiberal, however, if it is liberated from its liberal interpreters.
Religion, if taken seriously, is also illiberal. There is an affinity between religion and post-modernism, as well as religion and Marxism, both for better and worse. -- Yoshie