Avira > The state only funded torah because menachem begin – the closest thing we’ve ever had to a religious prime minister – was very friendly to and respective of charedim, especially rav shach.
Many charedim, including my rebbeim in bais brisk, refuse any and all money from the government.
Not taking money from the government is a respectful position comparing with those who disparage but take (more than fair share). I am not sure how logical it is – it is very hard to deny that having Medinat Israel, and simply millions of Jews in Israel, has no significance. Just think of all Sephardim, Yemenites, Russians, Ethiopeans who escaped prosecution and found home in Israel. Would they be in good shape during Iraq-Iran war or under Asads? And even the Kibutznikim – would they have been better of, if they joined Bund in Poland or Communists in Soviet Russia?
You seem to compare against an ideal, while you need to compare against realistic alternatives.