The young Jews hanging out in Zion Square aren't Orthodox but they may be religious. Or they may be secular. Or they may be anti-religious. Regardless, they may be in favor of a strong, uncompromising Israel for security reasons. They may be Zionists. Interestingly, the Neturai Karta—the ultra-orthodox sect next door—oppose Zionism believing that a Jewish State has no right to exist before the coming of the Messiah. Ironically the signs warning about appropriate dress now need to be displayed in Arabic in addition to Hebrew and English because of the effects of Zionism on Muslim mores.
This is one complex mix of beliefs and lifestyles. The issues extend to government. There's currently a big debate going on about the transporting of a large state-owned turbine. If it's transported on Shabbat, it would violate the Orthodox creed, transporting it on any other day would result in virtual gridlock in the center of this narrow country. The issue has lead to one party bailing from the coalition government.
If and when a real peace replaces the conflict between Arabs and Jews here, the Jews will continue to have each other to contend with—a daunting challenge.
Separation of church and state—what a concept.