My previous post was not written well and therefore misinterpreted. I will restate the point I was trying to make in different terms.
There is a fundamental clash of culture between Western liberal democracy (especially the US) and fundamentalist Islam (Saudia Arabia being an example), and Orthodox (especially Charedi) Judaism.
Using the US as an example (since that is where I was born and lived most of my life) let us look at a number of the fundamental principles underlying the US:
1. All men are created equal
2. Freedom of religion
3. Freedom of speech
All of these are denied by Orthodox Judaism and Fundamentalist Islam.
1. All men are created equal - non-believers are not equal, women are not equal, etc.
2. Freedom of religion - hilchos avoda zara
3. Freedom of speech - various issurim of mekallel hashem etc.
4. Democracy - this is self evident
Therefore, if you would take a halachic state and look it from an American viewpoint it would not look much different from the outside then Saudia Arabia.
There is a simple test. A Charedi Jew can live very well and prosper in the US without the government really bothering him. He/she can dress the way they want, educate their children for the most part the way they, etc. The same could not be said for a halachic state. Put the average American in a halachic state and they would have to change their way of life. They couldn't dress the same way, worship, etc. From that perspective it is not very different from Saudia Arabia.
That was really my point. I was not trying to compare the 2 any more then that.