I don't see how simply being a theocracy automatically makes it "better", and death penalty for adultery and stoning may seem grotesque to a Western mind, but to a society that accepts and considers that to be just, well, that's their choice. Having spoken to Iranians, they don't have a problem with either punishment, as they consider those "crimes" to be undermining of the social fabric.
Don't even attempt to claim the moral high ground when it comes to justice as delivered from the state. Modern legal systems are no better (arguably worse) than the systems that went before them. Theyshoot people with no cause, blatantly imprison people for no valid reason and deliberately frames its own people for military ends. Not to mention such famous institutions as Guantanamo and those black op torture programs carried out by the CIA.
But wait, we have democracy I hear you say? If you call the circus that is the two party system "democracy", then I'm a flee on a baboon's arse. There's no meaningful difference between the parties, and on those occasions where they promise to fix the mistakes of the previous administration ("I'll close Guantanamo" said Barak), if the people actually give them the chance to carry out the promise, they simply renege when the time comes.
I think it's time the so-called "Free World" got off its moral high horse and recognised that it is no better than the barbaric hordes it's fighting against. Indeed, when viewed from the Other Side, we're the barbaric hordes.