This country was founded on biblical principles. That is completely different from a theocracy. The first textbooks in schools were bibles. Both our Declaration of independence and many if not all of state constitutions recognize God in some way. And yet it can not be claimed that there was ever a theocracy in this country. Passing laws based on biblical principles does not make a theocracy. There should be no point in a Christians life where God and biblical principles are left out. That is a dual hypocritical life.
The country was not founded on biblical principles--it was founded on enlightenment principles. If you sat in a room with the founding fathers, I would bet that you would not theologically agree with more than 2 or 3 of them. You have the Deists like Ben Franklin and Jefferson, along with the Unitarians like John Adams--not exactly representative of the theological tenor of this board.
And the Creator referenced in the DoI could be any god. Sure, many of the states had official religions, even...you know...the kind that liked to persecute Baptists.
And it can be claimed that certain state governments have had theocratic government, especially pre-Constitution.
Passing laws based on biblical principles may not be a theocracy per se, but in the context of a multi-religious, multi-cultural society, basing a law on one particular religion's tenets is neither democratic nor appropriate. If you believe otherwise, just be consistent in claiming that you only care for democracy or representative government if your friends are in charge.
In the USA, the government is the government of the people--not just of Christians. After all, we rebelled against an explictly Christian nation with its monarch in charge of a church.