I may be misunderstanding your post, but I don’t think you have to be a Jew, either observant or non-observant, to be a citizen of Israel. I know you don’t have to be to be a resident of Israel.
I think the principle that Israel is a “Jewish state” is just as fair as the notion that predominantly-Muslim states are “Muslim-states.” Similarly, the US, and many western nations, are “Christian nations,” even if the actions of many, or most, within those nations are anything but.
I am missing something in your post?