Of course Israel is not part of galus. Galus by definition means being outside of Eretz Yisrael. Are a significant portion of Am Yisrael in Galus, yes. Therefore, it can be said that Klal Yisrael as a whole is still in a state of Galus. A Jew who lives in Eretz Yisrael is not in Galus. Even so, Has the Geula been finalized? No, not even in Israel. That is a different question. We all still have a long way to go.
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