1. Israel does provide Tanachs to ulpan graduates, IDF inductees, etc. It is not the purview of the government to provide them generally. Certainly not the central government. Those who think so have been influenced by the socialists.
2. In Israel Jewish holidays and Shabbat are official days of rest (and most governmental offices are even closed duing Chol HaMoed), IDF kitchens are kosher (and during Pesach there are even signs that say “Do not bring chametz onto the base – that’s an order!”), during Sukkot officials welcome visitors in their sukkot, dairy companies advertise recipes for the Three Weeks, buses have stickers facing the front seats that say ???? ???? ????, etc., etc. When I worked for an insurance company in Tel Aviv someone who wanted to interpret a policy strictly was told not be like Bet Shammai butto be like Bet Hillel by someone who was not wearing a kippa. An apparently non-frum teacher, when told that she skipped a line in the textbook said that it did not matter as “??? ????? ?? ?????”.
3. The assertions of “shading up” and “idolatry” are so ridiculous that I really have to wonder about those who use such terms.