Sure, with years the pretense became increasingly transparent -- and of course, already in the time of Caesar, it was clear to any informed observer that things were very different from the heyday of the republican institutions. Still, I'm sure a second-century Roman would have been offended if one were to suggest that the proud republican "SPQR" inscriptions on public buildings and military standards were just a hypocritical sham, even if that claim would have been more or less correct.
Moreover, the imperial succession is one issue where it seems like the need to maintain the pretense had serious practical implications, since it was impossible to legislate clear succession rules that would recognize the imperial office as hereditary. In this regard, as much as the republican institutions had become increasingly irrelevant from Augustus on, there was still a deep and fundamental difference from explicit hereditary monarchies such as the Parthian Empire.
I've recently run across this 2007 post on the blog Unqualified Reservations (archive best read here). It is written by Mencious Moldbug, who is probably familiar to some Overcoming Bias and Lesswrong readers. He is a erudite, controversial and most of all contrarian social critic and writer. In 2010 he debated Robin Hanson on the subject of Futarchy.
Violating Godwin's law to breach the fence between religion and ideology to see what cognitive dissonances we can dredge up is old hat for us LWers (A Parable On Obsolete Ideologies 2009 by Yvain).
I hope you can now see reason I've picked a partially misleading title, since I think Moldbug makes a pretty convincing argument that belief in "religion" may be considered harmful even for atheists, let alone those of us who aspire to refine rationality.
In such a model questions like "is the Church of Scientology a religion?" dissolve rapidly. Whether something should be tax exempt because it is "really" a "religion" or "a church" is a legal question of importance only to activists trying to challenge law and lawyers, that shouldn't change our ethical intuitions or cause us to try to imagine a sea or play up rather minor geographical features, to separate the continents of Religion and Ideology in our maps of reality.
Every single proposed mechanism for the retention and spread of religion from convenient curiosity stoppers, indoctrination of youth, to tribal identity markers hold for ideology just as strongly as for religion. Even seemingly very specific memetic adaptations like "God of the gaps", seem to arise in various non-theistic ideologies. Maybe similar adaptations arise because it is the same niche?
Thinking about the implications of such a hypothesis, atheism for one additional god is a rather easy step of rationality to take. Very few people believe in the great Juju or Zeus. Adding YHWH to the list isn't that much of a stretch, for those fortunate enough to be educated and living in most of the West.
But how hard is it for someone to question, in a unbiased fashion, such gods and holy words such as say Democracy?