A police state can be as you described and it can be as this journalist described. It can be semi-police state too or it can be developing into one. Considering that israeli jews and israeli non-jews are treated differently for multitude of reasons it would not be something strange that one of the categories lives under a police state while parts of it are sipping over to the first category for interfering to much into the dealings with the second.
Judge orders Jerusalem Gay Pride attacker to undergo psychiatric evaluation (Haaretz)
from the article: A Special Place in Hell / If the secret police ran a Jewish state