I'm confused by your use of the term, "Theocracy" in relation to Jews. Israel is a Jewish state. I doubled checked dictionary.com and that's the defination of a theocracy:
http://dictionary.reference.com/search?q=Theocracy
the·oc·ra·cy ( P ) Pronunciation Key (th-kr-s)
n. pl. the·oc·ra·cies
A government ruled by or subject to religious authority.
A state so governed.
The United States is a representative republic, and our Bill of Rights spells out the freedom of and from religion we are all supposed to enjoy.
I'm also not too sure who you mean by "they". I did read this whole thread so if I missed it, forgive me. But in my experience, Christians don't tend to criticize any other religions. Liberals, however, hate all religions except Islam. For some reason, a liberal who hates all aspects of Christianity and Judiasm has a real problem saying anything bad about Islam. It's the only religion I have ever seen a liberal defend on message boards.
And to address another point brought up in this thread: whether Jews are race. I've posted on message boards for many years and I've read quite a lot of stuff from people who claim to be devout Jews. They definately consider themselves different from everyone else. They're "the chosen people".
Watching two Jews go at, and see them agrue about who is more Jewish is just as hilarious as watching two Christians argue.
Being considered Jewish is apparently a very complicated thing. Unlike Islam, you can't just call yourself a Jew. One of the posters on one of the boards I used to frequent was very devout. She kept kosher. She was always posting about being a Jew. It was her main board identity. But when she met a man and got married, she couldn't get married in a synogue. I can't remember now why. Maybe her mother wasn't Jewish. She was asked why, and said something like she had more classes to take, or something like that.
Here was someone who presented themselves as Jewish for years and then when it came right down to it, other Jews said she wasn't Jewish. Go figure.