I wouldn't mind being able to be a Xenophobic Theocracy.
I never understood why so many games consider certain governments as 'better' and Democracy tends to be the catch-all end-all. Democracy came about with the Ancient Greeks, and in the modern day, it still doesn't seem to be a miracle worker.
Governments types fit specific situations, and should be designed as such, perhaps by having a 'base government' that brances, and then different branches. You could branch from Imperial to Fuedal to Theocratic Feudal or MErcantile Feudal? Or maybe have Representitive and Direct Democracies, or even Collective Consciousnesses?
If you don't want religeon to take control, and want to give large ammounts of power to your citizens as individuals, you go for Democracy, but quite a few non-democracies have been very successful at what they have wanted to do. Human rights is not always success.

I dunno, food for thought.
Alot of times though, befitting of my empire I'd like to stay an Empire, and be Feudal, etc, and get bonuses. Most of the time it's not worth it because I have high loyalty and Democracy gives me more bonuses. It's so much cooler to have an Evil Emperor than a President.