Medinat Halacha is the dream of Israel ruled by Biblical laws, the Torah. Few take it seriously, but the idea is gaining foot in the Islam. it can be argued the Saudi Arabia is ruled by the Quran, and as was Afganistan under the Taliban (divinity students). Now Pakistan government has given up the Swat Valley to the Taliban, accapting the rule of the Sharia as interpreted by the rebels. Alreadyu, the Taliban in Swat have executed dozens of government employees, including policemen, and people they accused of indulging in "un-Islamic" activities. They have banned the education of girls and bombed or torched nearly 200 schools in the valley. They have also banned the playing of music in public transport and barred barbers from shaving beards.
From 1500 till 2000 wars were always won by those accepting Western ideas and weapons. The thousands of screaming mullahs led by the Mahdi had not a chance against the English army. But now, apparently, the primitives are winning.