Well, the present-day Israel is not a theocracy. It’s just the same by name as what we know from the Bible.
When 78% of American Jews vote for someone like 0bama, and when the country of Israel has so many who do not practice their faith, while the “most faithful” live off of welfare there, I’m not sure what God can possibly think of people who think they are “His People.”
Maybe that’s why Christ came, to offer Gentiles and Jews an opportunity to be His People.
Besides, nations don’t curse nations; people do.