If that were so, we would see, for example, increasing opposition to gay rights, marriage with non-Jews, or conversion in which the convert is not expected to become Shomer Shabbos. That isn’t happening. What we see is the ruling class is increasingly and militantly secular, which is why we see programs designed to surpress the frum community (banning non-rabbinut kashrus, conscripting yeshiva students, and attempts to close down schools that don’t support zionism). One would also expect, if Israeli is moving towards being more Jewish, that non-kosher food vendors would be going broke or becoming kosher – and that isn’t happening.
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