ofcourse a theocracy is worse than a democracy. from divine monarchs or the iranian revolutionary council, power was concentrated in the paws of people who thought there divinly inpsired dictates were inalienable and not open to electoral inspection. economic egalatarianism was never a reality in any communist regime.
your premises about human nature are off, one-dimensional, and reductionist. there isn't
an innate overriding hunger for freedom unless you count severely troubled criminals. and not
all citizens of the polity are deranged criminals. unless ofcourse that was your original basis for proposing implants in fetuses.
<< A similar way, but much more effective and secure, would be to implement a little chip in the 'brain' of a developing embryo. That way, after the child is born, no one can ever change the chip from the outside without killing the child and the child itself wouldn't even notice it. >>
most people are more than content to abide by norms of common law. there will always be a segment - always a minority if you are speaking of the criminal class - who take more freedom and liberties than the law allots them. we have enough laws. some of which are not enforced for reasons too delirious to fathom.