Here is a great must read from my friend Hunter Baker.
The situation forces us to be honest about where we are as the church. Fortunately, we have antecedents to guide us. If you look at the history of the church in the west, it has really operated on two models: the comprehensive church and the regenerate church. If you think about the picture I painted of the church at the center of the city in Freiburg and my thoughts about what it might have been like at the height of European Christendom, then you have a sense of the comprehensive church. The comprehensive church was tightly interwoven with the political and legal structures. To be born into the community was effectively to be baptized as well. We still see little vestiges of the comprehensive church in Europe, but the lesson seems to be that legal establishment ultimately saps the church and leaves it subsidized and conforming.