Just like some folks consider anarchy to be lawlessness and the absence of order, the word theocracy is often misused. As quoted in my Useful Quotes sidebar, "Few things are more commonly misunderstood than the nature and meaning of theocracy. It is commonly assumed to be a dictatorial rule by self-appointed men who claim to rule for God. In reality, theocracy in Biblical law is the closest thing to a radical libertarianism that can be had."
I often read or hear folks critical of some theonomic proponents state that it is their goal to take over and institute a "christian" government. It's obvious that folks who make this claim have never really read any theonomists. At the very least they do not understand what they have read.