Israel is mostly secular and is by no means governed by Halakha; it’s not any more of a theocracy than the US is. Netanyahu is not religious at all, and though some members of his coalition are, they’re not the majority partners.

This isn’t a pro-Israel comment (I’m generally not a fan of Israel), it’s just factual. When Israel describes itself as “the Jewish state” it understands “Jewish” as referring to something that could variously be described as a culture, ethnicity or “nation”, not to the religion of Judaism.