I think this is the hardest for the MJs to grasp. They want to admit their unbelieving Jewish brethren are in some respects faithful to God's Torah-Word, but they can't quite admit that true Torah faithfulness since the appearing of Messiah is constrained to 1) believing on the Lord Jesus Christ for salvation and 2) following the doctrines of the apostles. Both conditions are required to be truly Torah-observant.
At my request for clarification, our friend Buggman has given a definition of "functioning Jewish state in Israel" that included as essential a "Torah-observant" population and leadership. But I'm afraid he interprets "Torah-observant" strictly in terms of the older covenant. In reality, the purpose of Torah was to point people, especially Jewish people, to Jesus Christ. Thus, as I said, a Torah-observant person is one who has come to faith in Jesus Christ and is now living according to the fuller revelation of God's will for His people found in the Old and New Testaments combined. The modern state of Israel in no way approaches the biblical definition of Torah-observant.
We also have to deal realistically with the fact that since the appearing of Jesus Christ and the new covenant's arrival, it is no longer possible to become part of "Israel" by keeping purely old covenant prescriptions. Is a person who converted to rabbinic Judaism in the last century really a part of biblical Israel. I believe the honest answer, once you read and understand the New Testament, is "no". The only operable covenant today is the new covenant in Jesus Christ. It is the only way that people can approach God. All other approaches are a deception.