Purpose of Israel to the World: Homeland for the Jewish People or Jewish Democratic State?

Recently in Israel, there have been debates between the Knesset and the Supreme a court over the issue of what to do with the IDF soldier that killed a terrorist. Finance minister MK Yair Lapid responded to the recent attacks on Israel’s Supreme Court and highlights its vital role in safeguarding Israeli democracy:
“In who’s best interest is it to weaken the Supreme Court?
The corrupt, because the Supreme Court puts a stop to corruption time and time again.
The radical Left, which is uncomfortable with the fact that the Supreme Court lends legal backing to the war against terror, and thanks to its efforts the IDF can operate freely in Judea and Samaria.
The radical Right, who would rather have a state based on Jewish religious law than a true democracy, and doesn’t care if Israel remains isolated in the world.
Populist Knesset members, because the Supreme Court prevents them from passing superfluous bills whose only purpose is to garner favor with their party’s central committee.
The government, because without the Supreme Court there would be no one to critique its decisions and balance its power.
In whose best interest is it to not weaken the Supreme Court? All of us. All of Israel’s citizens. Because without the court to whom would we turn for justice?”
After reading this I thought of what Israel’s purpose is to the world. Is it meant to be the Jewish homeland, or to be the only democracy in the Middle East? This has been a key issue the role of Israel since its existence and especially since the world leaders recognized Israel as a Jewish state.
How did Israel and the Jewish people did come about? In the Bible it says Israel and the Jewish people came from G-d, with our patriarch Abraham and his father, and later down the line Jacob, who later became Israel. With help from G-d, our people were saved from slavery in Egypt with the leadership of Moses and brought back to Israel. Later King David and his descendants helped build Jerusalem, known today as the Old City.
As these events unfolded over 3000 years ago, the Jewish people remained in Israel during the invasions of empires and exiles. When Jewish people stood as a united and faithful people, history showed Israel was the Jewish homeland for the Jewish people and it prospered.
In 1948 the “world” recognized Israel as the Jewish democratic state that it currently is, the state in which it allows all people from all different cultures to live in Israel. But is this really good for the Jewish people? It makes us vulnerable to radical Islamic terror attacks with almost an impossible way to defeat them, especially when the world justifies it. Yes, there are many Christians that respect the Jewish people and Israel and the Jewish faith, but there are some that don’t which leads to converting Jewish people away from Judaism. There is a dilemma how the law should be governed, either religiously or democratically. With Israel having two forms of government, the Supreme Courts, the Knesset, and the rabbinical courts have created hardships to many Jewish Israelis.
On the other hand, being the only democratic state in the Middle East has its advantages in the war against radical Islamic terror, in which the core belief is not a democracy but sharia law. This helps with relations with other countries, making Israel likable to the nations.
Here is the question: if most of the monotheistic religions believe in G-d Judaism, Christianity, and Islam, it is in the Quran that Israel does indeed to belong to the Jews. Why is it such a sin to the world for Israel to be the Jewish homeland as G-d intended it to be? If surrounding Muslim Arab countries can have a Muslim sharia law based country and Catholics can have the Vatican, why can’t Israel have this very tiny Jewish Halacha law-based country? According to Torah, Israel and the Jewish people’s mission are to be separate from the nations and to be a light unto the nations. But by not following G-d’s plan for Israel possibly could be holding back more blessing to the world.
What say you–should Israel be a homeland for the Jewish people or a Jewish democratic state?