From the files on record.
Before the first Teyuan War, the Seven Gods Church had no significant power, unlike now where larger cities have churches.
In other words.
Even if there were churches at that time, they were just a few, far less powerful than the state and the Celestial Essence Alliance.
The church developed after the first Teyuan War.
The first Teyuan War ended with the victory of the united forces of the nations.
The East Prosperity Imperial, Free Federation, and Yellow Sand Empire, the great empires that led the charge, divided the corpse and remains of the Celestial Essence Alliance, growing into today's behemoths.
The remaining smaller countries sipped the broth.
Some countries that stood with the Celestial Essence Alliance were naturally annihilated by the kingly armies of several great empires.
"The Sub-human were once the backbone and ruling class of the Celestial Essence Alliance? No wonder."