Still not much reaction to that State Department report. Naomi Chazan has some thoughts on the problem:
The State Department's report is just a warning light, showing sincere friendly concern. It should be viewed as a signal from a faraway friend relating the grave state we are in. If we wish to continue existing as a state that belongs in the realm of open and democratic states, while offering a supportive and welcoming home for the various religious currents that exist inside it, the State of Israel must seriously address the grave consequences of the status quo in state-religion affairs that remains in effect.