observant jews are a minority in israel. but yes, there is a problem w/the orthodox establishment's monopoly grip in certain areas. that doesn't mean israel isn't a democracy. if a jew wishes to marry a non-jew, something many have done, they just go to cyprus. nobody in israel will punish them for it. you can also leave your religion & choose freely between religions as far as the state is concerned. do compare that to the muslim countries.. are you expecting to find iranians living in israel? you think they'd have any wish to? the state didn't kick out any of the minorities that didn't choose to leave themselves after the war in 47-49, notably the arabs. you know what happened to jews in most muslim countries. no doubt the israeli system needs an overhaul & a few changes (possibly via a secular constitution), but just don't forget the great US still had racial segregation pretty recently, something israel never has had.
MK Nachman Shai calls on Netanyahu to declare national state of emergency (Haaretz)
from the article: U.S. State Department: Israel is not a tolerant society