I strongly believe in the separation of church and government. Religious beliefs should never be the basis for law. Not here, not in the US and not in the middle east.
It's a subject that can confuse a lot of people. I agree with you Anders, the state should not be in charge of mandating religious dogma. Governments are too easily corrupted and any notion of having them dictate faith is a path no one should want to see.
That having been said, it is possible to recognize common ground between the two. The letter of law is supposed to protect the citizenry and is structured similarly to the 10 Commandments. Without law a state of total anarchy would exist. The protections meant to keep us safe would not be in place. But the law needs to have a foundation it was built upon. A foundation that (by design) benefits all through it's recognition that it's citizens deserve equal protection and that it should never be manipulated to divide and redistribute freedoms for the benefit of any single group over another.
I believe that religion and the state should be able to co-exist. As a matter of fact, it is difficult for me to imagine a state remaining uncorrupted if it refuses to support the tenets of religions that are based upon standards that promote self denial in favor of the common good. The opposite is a state in which only the strongest prevail and laws would be modified to the benefit of those with power.
Countries that ban religious freedom are not much different than those that promote a state sponsored religion. In both cases the interpretation of what is just will be based upon the moral compass of those in charge.
We need religion. Without it a nation will suffer the consequences of having those in charge determine who will thrive and who will have their liberties curtailed. A state controlled religion is not the same. - And a state that denies any common ground with all religions is doomed to follow a path where those with the most power decide their fate.
Evil and corruption do exist in this world. Without some form of moral compass guiding us, who's to say what the world would be like. Ideally we'd live in a world where we all strive to better ourselves and each other. That does not mean that we build an environment that denies the existence of God nor does it force that belief upon people. Instead it should allow religious freedom and recognize that without it - anarchy would prevail.