No... They are Totalitarian in everyway... They rule with absolute authority... with very few exceptions.
No one is allowed to veto them, they are not subject to their own rules, and their words are not only law but their will is imposed on all within their purview. The only people they are subject to are their direct allies and enemies who will often not interfere with their own affairs. If they have people under them who govern (which they almost always do) then they are completely 100% subservient to that god.
Well then again Demon Gods could be considered a anarchistic society. Since the demon while the most powerful only has the authority it can take on a day to day basis.
The exception are the gods who do nothing or actually develop another form of government... Though one COULD say Feudalism... but then again they have absolute authority within their own realm... so... Yeah it isn't helping.
The fact that they are sometimes benevolent or wise does not exclude them from being totalitarian.
Which is kind of what pisses me off about the whole "Societies by alignment" lists they gave... They are 100% politically based... Rather then a serious observation of those forms of government. Which... again... They do not follow (plenty of Lawful dictatorships in dnd...)
Totalitarian isn't "Good" or "Evil" or even could be "Neutral"... How good or evil depends on the ruler... and how Lawful or Chaotic depends on how much the ruler sticks by their own guidelines and rules.
The trouble is that none of that makes any sense in a setting, and it would be insensible to apply it as incredibly narrowly and inflexibly as you seem to be doing.
Complexity isn't going to spring unbidden from concepts that are applied with as much sheer laziness as this. And it is the application of it, make no mistake. It's where you simply couldn't be arsed to figure out how a medieval society would relate to its gods, how a leader would come to power and how they would rule, how gods and mythology actually work, informed by actual world history, the facts of which can be used and adapted to give actual verisimilitude and depth to a setting. You know, the things that make a setting interesting!
The tragic thing is that the way you describe a D&D setting, one such place could be an interesting place to explore (since that is a pretty apt description of the Thousand Gods of southern Arcem from Godbound), if it were done with the voice of horrible realization carried to its logical conclusion rather than just the voice of complaining.
Dungeons and Dragons seems to go by the idea that both good and evil are the natural order most of the time.
In a few it is evil that is the natural order. Good is the imposition.
You see, that first bit is the sign of a confused theme and multiple authors. It's a knot you would do well to resolve if you want a central conflict with meaningful alignments (if you want high fantasy, that is). Having no coherent theme is a problem - solving this entails limiting the scope of your story in an established setting to a bit where the theme is identifiable, or altering the setting to suit a theme. Like, are the great kings of the realms good? Evil? Do they represent tradition or usurpation of values and authority? Are some of them secretly orcs in disguise? Is one of them actually thirteen different people who look suspiciously similar, each of them believing they're the real one and the others are fakes, though they all take orders from a powerful enchanter responsible for their current state?
Though yes "Practice" matters... but this whole "Communism is chaotic" is just... Political grandstanding that democracy HAS to be the better form of government and must be the opposite! Rather then understanding it or its principles... OR is using its few failed attempts (which were a corrupted version of communism that Karl Marx wouldn't recognize) as its typical form in spite there still being communist countries today... OR not understanding how any form of government can become corrupt.
-It is especially hilarious because in the "Forms of governments to alignments" they seem to not understand what a monarchy is...
Communism isn't chaotic, it's the vision of a more perfect order. It gets corrupted by chaos into a dystopia of power unchecked and rampant. Similarly, is the king the True and Rightful Heir, the Hero Who Became A King In His Own Right, the Treacherous Vizier, Henry the VIII, the Actual Reincarnation of the Previous King, Fake Dmitri or something else? All of this should be taken into context when understanding the context of the government. The same applies to a democracy.
And in the end, the best part of doing a D&D game is that you get to dictate what is right and wrong, and what is lawful and chaotic. All the rest is personal interpretation. Such as this one game I recall where a plague of undead swept over Cormanthor, and the result was a massive backlash against the god Lathander, who was perceived as having failed his worshipers in having let this happen. You can do that! Invent! Characterize! Use the noodle!