HaKatan,
I think your comparison of status of Jews in EY and US suffers from observational bias: in Israel, you see non-observant Jews as a group, and they are interacting with the observant on daily basis and react to a friction of shabbat/kashrus in their daily life. In US, you see them only in the news and most are quietly disappearing without coming to bother you. It does not mean that they are in a better shape. I think it is opposite – non-religious Israelis are always one step away from stumbling into a shul, or into an observant colleague and learning something, without a danger of immediate intermarriage.
R Schach cared about those Israelis and thought that Hashem cared: he writes that Arab anti-Semitism was min hashomayim, Without it, early Zionists would have gone to U of Cairo and Beyrut and intermarried.