I guess that's not what I think of when I think of a theocracy. What your describing sounds like more of an anarchist type of position. Not all libertarians are anarchists, and I am certainly not an anarchist. I believe that government does have an important role to serve in providing basic infrastructure and in protecting life, liberty, and property. A situation in which there is not government, I believe, would inevitably become a power struggle, which would result in the powerful oppressing the weak, and would eventually become tyrannical. In other words, we would have exactly the opposite of the problem that Randians are concerned about (a government which robs from the powerful to give to the less powerful). As much as it would be nice to see God's laws prevailing without a human government, I think that that is unreasonable until God restores all things. Until then, we have to settle for minimal human government, which provides basic infrastructure, sets basic ground rules for how we treat each other, and enforces laws necessary to ensure that we are not depriving one another of life, liberty, and the enjoyment of our property. In the meantime, citizens (Christian citizens, anyway) have a responsibility (not one to be enforced by government) to live compassionately, civilly, and generously. This is what separates my view of libertarianism from the Randians.
Hmmm ..... so, basically, you're agreeing with the ancient Israelites who were not happy with judges, and wanted to be like the people of other nations? And God warned them of the consequences to which they were rushing, and they did not take heed.
Reminds me of the Italian poem, "The People"
"The people" is a beast of muddy brain
That knows not its own force, and therefore stands
Loaded with wood and stone; the powerless hands
Of a mere child guide it with bit and rein;
One kick would be enough to break the chain;
But the beast fears, and what the child demands,
It does; nor its own terror understands,
Confused and stupefied by bugbears vain.
Most wonderful! with its own hands it ties
And gags itself-gives itself death and war
For pence doled out by kings from its own store.
Its own are all things between earth and heaven;
But this it knows not; and if one arise
To tell this truth, it kills him unforgiven.
by Tomasso Campanella, as translated from the Italian poem,
"The People," by John Addington Symonds
In short, following God is not anarchy.
