Not very according to this commentator:
Laws have been passed curtailing civil liberties:
In the last two years the Knesset has proposed and passed laws that seriously endanger Israel’s identity as a liberal democracy.
It began with a law forbidding public commemoration of the Palestinian refugee crisis of 1948, known as the Nakba; it continued with the demand for all new Israeli citizens to swear a loyalty oath to a Jewish and democratic country, and recently culminated in a bill outlawing calls to boycott any Israeli group or product — including those from the occupied territories.
And some members of the ruling coalition explicitly would like ot see a theocracy replace the democracy:
The national-religious parties in the governing coalition, meanwhile, are based on the belief that the Jewish people have a God-given right to what they call the Greater Land of Israel. In the long run, they want Israel to be a theocracy based on biblical law. Their participation in the democratic game is based on the prediction that Israel’s demography will inevitably lead to an Orthodox Jewish majority, and that they simply need to make sure that Israel doesn’t give up the West Bank before they rule the country.
The ultra-Orthodox parties, Shas and Yahadut Hatorah, also want Israel to become a theocracy in the long run. Until a decade ago, they did not necessarily claim that Israel should hold on to the occupied territories, but they realized that their electorate is right-leaning, and they need space for the rapidly expanding families of their constituency. They see liberal elites as their primary enemies.
Underlying this shift is an ongoing fear of terrorist violence, and as we've covered in class, people are willing to give up civil liberties - which leads to more authoritarian government - in order to be secure. Democracies - correctly or incorrectly - have been judges to be too weak to provide security.