It seems odd to me that theocracies are being singled out as corrupt debauched deviant whatnots.
Such corruption is in all positions of power.
Let's take for example the most prosperous and long lived Republic of all, Rome.
The whole concept of orgy originates from there.
The renaissance examples about theocracies really do not fly that well, mainly because of the time, renaissance, at the time religion was pretty much seen as nothing else than bullshit, the old values from the Roman Empire and Greece were worshiped, hence orgies and whatnot.
What was done by the Borgias was nothing compared to what the nobility was doing everywhere during that time, because it was commonplace.
Everyone has come across the stories of French courts, there was nutty kings in England killing their wives, general incest among the nobility and all those jolly good things that have been seen as the bad side of monarchies.
Papal states were built on the foundation of the old Roman Empire, thus making its roots rotten and corrupt.
So were the monarchies of Europe.
In human history there is very few examples of pure theocracies (societies built from scratch into theocracies) hence I would say that there are no real examples on its inherent corruption.
Only real life examples would be the Jews, and how their society has been run through the ages (of course there are differences between the Amarr and the Jews) and of course the Islamic States that are following Sharia. You could add the Vatican into the list, but basically it is just a 'special' State in Italy, not a country.
Of course I am rambling here.
At this time and age that we are living in, it is okay to hate religion, it is okay to laugh at people that are dumber than you and it is all right to be an utter twat on the internet.
I think this combination shows in the way the Amarrian Empire has been portrayed by the PF after the original background information of EVE was given to the players in the shape of chronicles.
But I digress, I'll go get something to eat.