What is the value of a secular State of Israel for a religious Jew, especially when a largely secular government seems to take lightly the innate sanctity of the Temple Mount and the Machpela Cave?
Our present festival of Chanukah provides the answer.
Despite the fact that Chanukah is "merely" a rabbinically ordained festival, it has become 
The Macabeean victory... is so reminiscent of the early struggle for our Jewish State.
one of the most popular and visible holidays on the American scene. One possible reason may be that its place on the calendar (though not this year) often coincides with the American Christmas, and the idea of a Jewish "festival of lights" fits in quite well with the general American "season's greetings" culture towards the end of the month of December.

The Macabeean victory... is so reminiscent of the early struggle for our Jewish State.
one of the most popular and visible holidays on the American scene. One possible reason may be that its place on the calendar (though not this year) often coincides with the American Christmas, and the idea of a Jewish "festival of lights" fits in quite well with the general American "season's greetings" culture towards the end of the month of December.Chanukah has also emerged as one of the most popular holidays in Israel. Undoubtedly, the entire school system - religious as well as secular - being closed for the entire week of the festival imbues the Israeli youngster with a boundless love for this mid-winter period when the country is flush with celebrations and special performances, all geared to the child's growing curiosity for the world around him. But there is also the simple, historic element of the Macabeean victory against the Greeks, which is so reminiscent of the early struggle for our Jewish State of Israel, allowing Chanukah to take on, for someone growing up in a country that is still surrounded by enemies who would destroy us if they could, a much greater urgency and relevance.
Nevertheless, a case could be made against any Chanukah celebration at all, from a religious perspective. After all, the first Hasmonean Kings (relatives of Judah Maccabee, hero of the revolt) descended from the tribe of Levi, the tribe of priests, and the Bible insists that kings ought to emerge from the tribe of Judah: "The scepter of rule shall not depart from (the tribe of) Judah" (Genesis 49:10), with the Ramban (ad loc), forbidding a king from any other tribe. Even Maimonides ("Laws of Kings") insists that a Messianic, eternal dynasty can only emerge from Judah.
The historical fact is that the Hasmoneans, priests of the Holy Temple, arrogated to themselves - in defiance of Jacob's tribal blessings and codified Jewish Law - the kingship of Israel. Not only does this circumvent the Torah, but it also brings an end to the separation of Temple and state, a wall which preserved priesthood and royalty as two distinct ideas. And this separation was seen as crucial for two important reasons.
A king's throne may be high, but it dare not be higher than the commandments of the Divine: the same ritual practices that apply to the simplest Jew must also apply to King David. It was deemed important that the king be equal - and not superior to - any other Jew, at least in the realm of religious ritual, and that such equality imbue the king with 
We shouldn't be too surprised that the Hasmonean rule was doomed.
fundamental humility, enhancing the powerful notion of universal subjection to the King of all Kings (Deut. 17:18-20).

We shouldn't be too surprised that the Hasmonean rule was doomed.
fundamental humility, enhancing the powerful notion of universal subjection to the King of all Kings (Deut. 17:18-20).Priests, however, have a relationship to the Divine sets them apart, obligates them to more than the average Jew and grants them special privileges, entry to parts of the Temple wherein the ordinary Israelite cannot enter. This can suggest specialness of persona and higher, Divinely bestowed authority for the king, which could spell disaster in the creation of a totalitarian monarchy. Secondly, whereas the King might be forced to make certain ritual compromises in his day-to-day activity with the international community, the Jewish ritual must stand above the exigencies of the moment and express eternal relevance and continuity. Moreover, the ritual authority of the High Priest and the ethical authority of the Prophet - removed, as the Bible sees these functionaries, from the possibility of kingship - provided crucial checks and balances upon the individual who sat on the executive throne.
Hence, a king who is also High Priest provides a script for disaster. Therefore, we shouldn't be too surprised that the Hasmonean rule was doomed. True, there were achievements, territorial expansion and great building enterprises, but this couldn't cover up the strife, civil war and internecine conflicts between Hyrcanos II and his brother, or prevent the sad fact that the descendants of the original Hasmoneans ended up on the edge of apostasy, assimilating into the very Hellenistic world their grandfathers fought against so zealously. Subsequent Hasmonean rule was the very antithesis of religious fidelity and commitment.
Given all this, why the eight-day festivities beginning with the Hasmonean victory on the 25th day of Kislev? What about all the dark spots we've just mentioned, the stains on the Hasmonean legacy? Maimonides says it all when he explains our rabbinic festival and its concomitant recitations of the Hallel psalms of praises to the Almighty, "because the Hasmoneans restored Jewish sovereignty in the Land of Israel for close to two hundred years." (Mishneh Torah, beginning "Laws of Chanukah") What we are celebrating is that the Jews were able to wrest power from the Greek-Syrians, and restore the kingdom of 
"The Hasmoneans restored Jewish sovereignty in the Land of Israel for close to two hundred years." - Rambam
Israel.

"The Hasmoneans restored Jewish sovereignty in the Land of Israel for close to two hundred years." - Rambam
Israel. Yes, absolute power may corrupt absolutely, but what about absolute powerlessness? Having been the victims of so many foreign powers, the Jews know that the impotence of powerlessness leads to the brink of destruction even more readily than corrupt power. Whatever may be the consequences of a corroded Israeli government, they must pale in comparison to the injustices wrought upon our people by the likes of an Egyptian Pharoah or a mad-man Hitler.
Apparently, driving the Greek-Syrians out of Jerusalem was of such tremendous importance that despite the breakdown of the separation between High Priest and king, we nevertheless declared a festival. All the stains of the Hasmonean dynasty - and there were many transgressions - could not darken the successes of the Maccabees, vital to the future of the Jewish people. The lights of Chanukah had to be lit or the light in the world would have been extinguished forever, leaving Israel in total darkness.
An Israeli government may be far from perfect, but it nevertheless portends "the beginning of the sprouting of our redemption" much more than any foreign ruler can do. And the rest, how we change and develop that government, is largely up to us, residents of the State of Israel.