Most Israelis have some religious observance. About 10% are secularists and another 10% are orthodox observant. The rest are somewhere in the middle. So the situation in Israel is the reverse of the situation that obtains among American Jews - the difference being Israelis can't escape being Jews and reminders of one's Jewishness is reinforced not only by government religious institutions run by orthodox parties and society at large but also by the deep hostility of Israel's enemies. Very few Israelis would convert or abandon Judaism outright if offered the chance. As it is, the prospects of Jewish survival in Israel are better even with all the problems that Israel has, than it is for Jews in the Diaspora where most of them face problems stemming from assimilation and the secular nature of Western societies that makes it harder to keep their identity and transmit Jewish values to future generations. Jews in some respects had a lot easier time of it when they were under constant persecution. Freedom offers more security but it also poses a considerable challenge in keep faith with one's ancestors.
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")