Here is a problem with seperation of church and state:
The church is a guiding factor when it comes to morals.
The state is supposed to protect the people that have been entrusted by it. How it goes about this should be moral.
Now I'm not saying the church should rule, although that is an interesting idea, but that the state once seperated totally from the church will lose much of the moral principles that should guide the state. For example look at David and Nathan. When David stepped out of line as King of the people, Nathan forced him to realize it and correct the mistake.
One of the best governments the people of Israel ever had was under the Judges, when they were picked by God to lead and not man.
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