Not to let Ala Mhigo entirely off the hook (given their well known history of belligerence), but the Ala Mhigan civil war and the atrocities committed by the King of Ruin was actually due to Garlean plotting - Gaius was the one responsible who realized attacking front on Eorzea's 'strongest and most technologically advanced' citystate was not going to end well for him, so he waited and schemed, stirring up trouble inside the city and feeding Theoduric's paranoia.
Gaius waited nearly ten years for the results of his plot to come to fruition, and they succeeded beyond his wildest dreams - fed up with Theoduric's tyranny the Ala Mhigan people overthrew him in a brief but violent coup, and Gaius pretty much then just marched in and took over (one account states that the Ala Mhigans actually welcomed the Garleans, although that is contradicted by other accounts that they quickly and violently occupied the nation and annexed it almost overnight).
This is also the origins and reasons why the Corpse Brigade have such a bad name, they are the remnants of Theoduric's personal guard, so they're held with outright contempt by even their own countrymen and women and are thus shunned by most of the refugees in Little Ala Mhigo, leading them to become bandits and outlaws.
As others have mentioned there were those in the Resistance who had begun to debate exactly how Ala Mhigo's new government should be formed after the city was liberated, but a democratic republic is probably the most likely outcome (as mentioned Wildergart is the only known surviving member of the Ala Mhigan royal family and he is not interested in claiming the throne, instead focusing on rebuilding the Fists of Rhalgr).
Given that Ishgard made the transition from an autocratic theocracy to a democratic parliamentary republic fairly easily, and that even Ul'dah is toying with the idea (or rather, Nanamo is), republicanism is probably where Ala Mhigo's future ultimately lies (a further hint towards that is that certain Echo scene where none less than the American Revolution is channeled).



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