While I agree that the inherent bonuses of the T3 governments are better than the T4 ones, those extra card slots far outweigh the cost for most victory types.
The one thing I really dislike however, is that with the added focus on faith in GS (for RV or CV win types), the T2 government Theocracy is by far one of the strongest governments, even when considering that it sucks for card slots.
Had a Deity game yesterday, playing for a CV with BM Teddy.
It wasn't until the absolute very end (when I didn't need to faith buy Naturalists, and generally was so close to victory that I didn't need to faith buy more rock bands) that I bothered slotting in Digital Democracy (as well as for the extra tourism cards).
I never even bothered to slot in a T3 government - I mean, why would I?
Up until then it's all about buying enough Naturalists and Rock Bands (and the odd builder for seaside resorts), possibly Cultists if playing with SS mode on, and that -15% faith cost is immense (and keeps getting better the more you buy faith units, since the discount in absolute faith terms gets bigger and bigger).
Personally I'd remove or tweak the -15% faith discount from Theocracy, as the bonus is simply too good to pass up in RV/CV games until the very end.
This government alone nearly makes any government after it obsolete, and it really shouldn't be like so.