Though I appreciate your involvement in this discussion I do not agree with your points, smelling more of hasty judgments and colonial arrogance. Sorry if I misunderstood you.

First of all I see no point of speculating what Tibet would look like - you ask this question to draw negative opinion in minds of readers. Because most of them think that theocracy is bad. This question very often not only Chinese nationalists ask, when they try to justify unjustifiable but also all European colonialists asked - what indigenous American societies would look like if noble Europeans did not come and rescued victims of barbaric human sacrifices.

Secondly you're wrong in your description of Bhutan and your comparison with Nepal is not justified here - Nepal is not under occupation and nobody suppress culture of Nepalis.

Thirdly theocracy in Tibet was absolutely different from what we can see in Iran.

You can recommend two very good books on Tibet: The Dragon in the land of snow. A history of Modern Tibet 1947-1999 by Tsering Shakya and Melvin Goldstein's Demise of the lamaist state, History of modern Tibet 1913-1951.