I honestly can't say that I know very much about theocracies, nor do I really know of many examples. I suppose the current Islamic nations would be considered such, but I still don't know all that much about their government or any government really.
Freedom of religion would be out of the question. I guess that goes without saying, really. However, if your faith was the national religion it seems as if it could be a somewhat easy life. There would be no outside influences to stray you from your faith. You would have one code to live by and that is god's law. It believe there would be a sense of order and organization. You wouldn't have a bunch of politicians arguing over what laws should and shouldn't be passed. The government organization would be held under the authority of the supreme being and what is written.
On the negative side, it seems that in a theocratic government, there would be no freedom of speech in fear that you may convince someone that the current form of government is in the wrong. There could be no individual thought going on when everybody is expected to submit. I suppose if you knew only this type of life you may not realize that there are other ways to live. If you were to take me out of my comfort zone and plant me in a society that told me what's what then you would have a fight on your hands and in comes persecution. History has shown that persecution plays a big role under theocratic government. Under a theocracy, individual freedoms are greatly limited and I am grateful that in our society this is a totally foreign concept.