I can't speak to the specifics of the restaurant case. I can say in general, that some restaurants are open on the Sabbath, again a restaurant that wants to be certified kosher can not be.
These points just show how anti-Israel you are. You take one story and then claim Israel is like the Taliban without having teh slightest idea of what you are talking about.
Your point about India and refugees is wrong as usual:
1. Many Jews did move, namely from the Arab countries where they had lived for hundreds of years to Israel
2. Where would you like the Jews to go to? The "Palestinians" can go to Jordan, Egypt, etc. they speak the same language, have the same culture, etc. Yasir Arafat was born in Cairo, Faisal Husseini in Iraq
3. At least 20 million refugees were resettled in India or Pakistan. Israel as well has a significant Arab minority
4. The Arabs are the ones who left in 1948 because their leaders promised them that they would throw the Jews into the sea and then they would return
One last point about religion and the state, last I checked, Christmas was a federal, state and local holiday in the US, no Jewish, Muslim, etc. holiday has the same status. What does that say about the US?