Except "is" isn't the term being contested. "Theocracy", however, is.
There's a reason why debates have a part at the beginning wherein terms and concepts are defined. It provides a common ground for the debate to even begin, before splitting up into the different views. Otherwise, no debate is possible: We are debating regarding the merits of red over blue, but if your 'blue' is actually my 'green' because of a lack of definition, then the entire thing is pointless.
Which is why I asked for the Church's definition of theocracy, as Articles X and XI don't provide one. I feel as though this whole thing hinges upon defining that IC. Have fun guys.