Creed wasn't just a heathen. He's a known heretic. Its not toxic to prevent your enemies from marching an army on your own. Its common sense.
As for this Farronite "we want all the privelleges of a theocracy" stuff. If the Farronites, I don't know... Listened to the Church without having to make an ordeal out of it every time. The difference between the theocracies and the Farronites is this:
Prophet: Don't put your hand on the stove its hot.
Theocracies: Okay.
Farronite Republic: I'm gonna put my face on it!!!!
Elders: Hey, don't do it man, its a bad idea.
FR: You're not our Dad!
Elders: Listen mister, keep this up and you're grounded.
FR: NO!
Elders: Alright then you and D'hara can't have your sleep over then...
FR: Come on...
Elders: Get away from there now...
FR: Okay...
