The Torah was speaking to all Jews. No Jew is exempt from following the Torah. Furthermore, the state is not run only by non-observant Jews. There are several religious parties with many seats in the Knesset. Agudah and Mizrachi participated in signing the Israeli declaration of independence. And in a more general way, the State of Israel relies on its religious partners to give it Jewish legitimacy. They want their state to be seen as a Jewish state this gets them money and political support from American Jewry, and makes them feel entitled to equate their enemies with the anti-semites of history. They know they're not authentic Jews and have no real claim to the name, so they want the religious to live there, visit there, vote, serve in the government.

Furthermore, nowadays with the decline of Zionist enthusiasm among the non-religious, we see more and more that it is observant Jews living in the settlements and protesting disengagement.

Furthermore, it is really the Orthodox legislation that keeps it a Jewish state, in terms of population. Thanks to the Orthodox parties, intermarriages are not yet officially recognized, the Law of Return is still in effect, and immigrants have to go through some kind of conversion.

So, yes the religious are to blame for the continued existence of the State. If we let the State alone, it would probably disappear on its own. They would bring in non-Jewish immigrants and assimilate with them, and they would give back half the land to the Arabs. Perhaps they would make a binational state and it would become a melting pot.