Note that given the historical existence of the Papal States, the claim is, even when interpreted in the narrow sense, still wrong.
While the donation of Constantine was fraudulent, the donations of Charles the Hammer and Charles the great were real enough, but the church ruled those states under the holy Roman emperor, like a baron under a king—hence arguably not a theocracy. At least that is what they argued, though as the authority of the holy Roman emperor declined, the argument became less credible, and was accordingly condemned.
While the donation of Constantine was fraudulent, the donations of Charles the Hammer and Charles the great were real enough,
The very fact that papal secular authority was justified by the alleged Donation of Constantine reflects a profound lack of theocratic thinking. In a theocracy, a religious leader claims secular authority as inherent to his religious office—yet the popes and their champions considered it necessary to present their claim as inherited from a purely secular sovereign, despite the ultimate papal religious authority.
While the donation of Constantine was fraudulent, the donations of Charles the Hammer and Charles the great were real enough, but the church ruled those states under the holy Roman emperor, like a baron under a king—hence arguably not a theocracy. At least that is what they argued, though as the authority of the holy Roman emperor declined, the argument became less credible, and was accordingly condemned.
The very fact that papal secular authority was justified by the alleged Donation of Constantine reflects a profound lack of theocratic thinking. In a theocracy, a religious leader claims secular authority as inherent to his religious office—yet the popes and their champions considered it necessary to present their claim as inherited from a purely secular sovereign, despite the ultimate papal religious authority.