Some Orthodox Jewish groups do not recognize Israel. On the other hand, Israel has one of the highest percentage of people who are consider themselves atheists in the world. Israel is also a home of many other religions and nationalities who predate the creation of the modern Israel state. Syrian, Armenia, and Greek Orthodox churches exist there for centuries. So it is very multicultural country. There are 5.5 million religious Jews in USA and another million or two who are not affiliated with any Jewish organization.
As Bonsai said above. Israel is one of many states on the this planet. It has its responsibility for its citizens from security to economy. Whatever pertained to ancient era is much irrelevant to day to day living of its citizens, who need job security, economy, social nest, as well military check against potential terrorists. Very a few people are aware that in past 15 years there were widespread strikes or demonstrations in Israel due economic problem, unemployment, cost of living, and corruption.