How is Judaism practiced in Israel?
There is no one way that Judaism is practiced in Israel. Instead, there are multiple Judaisms,, some of which are very strongly opposed to one another.
In Israel, there are secular Jews who do not really do much to observe Jewish traditions. There are Reform Jews who do not follow Jewish law on things like diet. On the other hand, there are the ultra-Orthodox Jews who follow a form of Judaism that is extremely conservative. They do not allow men and women to sit together in any public place, for example. Ultra-Orthodox children are not educated in regular schools and the men often do not work for a living, preferring to spend all their time studying religion.
As can be seen from this, there is no one kind of Judaism in Israel.