That itself a distinctly modern framing. For many ancients, there was no such division; the way one lived was deeply entangled with the social contract. For example, there are religious sects that dictate specific political arrangements.
As for the diversity you speak of, I think it can be plausibly argued that many utopian conceptions of life really reduce to utilitarianism or hedonism. Diversity manifests in having different options for pleasure or utility. For a lot of people, that's inadequate.
I happen to be a philosophical liberal, and do not wish to live under a theocracy. Nonetheless, I think the fact that many of the highest aspirations of liberal philosophy amount to "having a good time" is a great risk that must be reckoned with, for it can undo the entire liberal project.