I think many cities would first devolve into civil wars as the various houses went to war in the power vacuum left behind with the loss of the theocracy. Then the wizards and sorcerers would sweep in and take control turning many cities into Magocracy’s.

Wizards sized control of Sshamath with Lolith very much alive after gaining a numeric advantage over the priesthood. And have ruled it for thousands of years.
If she was dead duplicating that feat elsewhere isn’t a stretch.