Anybody, Hareidi or not, can set up a business in Israel. How could the government stop you? Failure to do military servicde no longer carries the stigma that it once did.
What does carry a stigma is making false statements. If you stated that you wish to defer military service because of full-time learning, and then prsent the govt. with evidence that you are not learning full-time–well, what do you expect them to do? Give you shlishi for sheker?
Still many Hareidim do manage to set up businesses, even without service in the military. In general, what they will not get (or have less of a chance of getting) is govt. subsidies that are reserved for those who did perform some service to the state. And correctly so.
I do not see any evidence that the Hareidi sector is trying to break out of the cycle. Many national service programs have been proposed for Hareidim, all involving service exclusively in the hareidi sectors of society. None of them have made it off the drawing board, as influencial Rabbanim in Bnei Brak have let it be know that they will oppose such programs tooth and nail. So please pardon my lack of sympathy. They want conditions that no other sector of society has; while enjoying all th4e benefits and paying none of the price of membership in that society. And before you say that the membership in society is marginal–that is by their choice. Certainly when we come down to the nitty-griity–they benefit greatly. When the leaders of the Eida Hareidit go into Hadassa Hospital, they are not presented with a large bill. They receive exactly the same conditions as those who have been paying bituach leumi and health insurance for decades.
Regarding the State of Israel not being completely independent because of the amount of foreign aid–yep, that’s reality for you. I also have no problem with the US oversight, even if I disagree on many points. You gotta pay the piper.
As far as the Israeli govt.’s policies in Gaza, you are free to agree or disagree with it. However, don’t expect to have any influence whatsoever if you don’t vote. Since you consider the state a toeva, it is just as well.