Both extremes in this discussion are wrong. Judaism is what defines a Jew, but not everyone wants to live completely according to Halacha. The government should be democratic, but the laws of public life should make it easy for religious Jews to be Jewish and for secular Jews to feel Jewish. The country should respect Shabbat, by closing almost all businesses and offices, but people shouldn't be whipped for carrying. Religious neighborhoods should be free of traffic on Shabbat. The army should allow for religious Jews to not have to serve side by side with the opposite gender, the kitchens should be kosher, but soldiers should not be forced to pray. Until we can reach an accommodation and live as one people with a variety of levels of observance, we will risk losing Israel as we did 2000 years ago due to sinat chinam. After Moshiach comes, the country can be run through the Sandhedrin and the Malchut in a stricter way. But today we can't forget that Israel IS a Jewish country, in spite of some who want to deny it and make it a secular country. Ben Gurion did have it right.
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from the article: The Right / Religious Zionism sets its sights on leading the country