A theocracy is a government that governs based upon the dictates of religious doctrine. The Israeli government does not do this in any way, shape, or form. It is as secular as most Western countries.
Most nationalities are passed down by descent. If this constitutes racism, then so does the citizenship law of every nation that grants the right of citizenship to the children of a citizen. Nearly every country does this, so there is no reason to single out Israel unless you are trying to enforce a double standard.
Some nationalities allow outside individuals to join, and the Jewish nation is one of these. Like any nation, the Jewish nation has steep requirements of cultural belief and assimilation in order to join, namely conversion to the Jewish religion. But this is not merely a matter of belief. A Gentile who merely believes in Judaism is still not a Jew until they formally convert (i.e. joins the nation), just as an otherwise qualified foreigner who can pass the US citizenship exam is still not an American until they take the test and swear the oath to become a naturalized citizen.
Most nationalities are passed down by descent. If this constitutes racism, then so does the citizenship law of every nation that grants the right of citizenship to the children of a citizen. Nearly every country does this, so there is no reason to single out Israel unless you are trying to enforce a double standard.
Some nationalities allow outside individuals to join, and the Jewish nation is one of these. Like any nation, the Jewish nation has steep requirements of cultural belief and assimilation in order to join, namely conversion to the Jewish religion. But this is not merely a matter of belief. A Gentile who merely believes in Judaism is still not a Jew until they formally convert (i.e. joins the nation), just as an otherwise qualified foreigner who can pass the US citizenship exam is still not an American until they take the test and swear the oath to become a naturalized citizen.