HaKatan:
The problem is that many people understand Rav Elchanon’s statement to be similar to modern day statements by Satmar and Rav Aurbach regarding Shmad and learning in Israel.
. . . Slight edit . . .
The Zionists at the time of Rav Elchanon and the Brisker Rov wanted to replace Hashem and the Torah with the “Jewish state”. There are a few “Religious Zionists” that may have believed that (e.g. the army’s directives outweigh halacha”), but even back then they were few and far in between, and certainly after Gaza. The “Religious” Zionists wanted to use the “state” as a tool so that Yidden would be Shomer Torah, and the (pre-war) issue was they were Mishtatef with Reshaim who wanted to destroy Klal Yisroel as Ovdei Hashem. At this point (post-Begin certainly), the vast majority of Torah Yidden hold similar to Rav Shteinman against the Brisker/Satmar Mehalech that some degree of cooperation is allowed. At no point did the Poskem of any Torah group who were mishtatef with Zionists do so by giving up the primacy of Hashem and His Torah, even pre-war, to be considered to be Ovdei Avodah Zara.