Last week I called your attention to an edition of the derashos of R' Teichtel that seems to be missing the section where he expresses his support for a Torah/avodah combination in order to settle Eretz Yisrael. This week I present you with this link that will take you to last week's edition of "Yabi'a Omer," a parsha sheet devoted to the teachings of R' Ovadya Yosef. On the last page you will find an excerpt they print from a teshuvah in Shu"T Yabi'a Omer vol 6 in which R' Ovadya expresses his pain at the religious failings of the State of Israel, and concludes that because of these failings many still perceive that "Shechinta b'galusa" and therefore (here the editors bold the words to make sure you get the message) they refrain from saying hallel on Yom ha'Atzmaut.
The only problem is that if you look up the actual teshuvah (I don't believe it is available online so I can't give you a link) you will discover that R' Ovadya continues and writes that there is much good that can be found in the State as well. The State is the Torah capitol of the world, with thousands of people now learning Torah, thousands more who have come closer to Torah, and religious and spiritual growth constantly increasing. Therefore - and this is how R' Ovadya concludes the teshuvah - if one wishes to say hallel on Yom ha'Atzmaut, one is permitted to do so after davening, albeit without a bracha.
I think it is fair to say that R' Ovadya's opinion of the State is a bit more complex than the quote taken out of context would lead one to believe, and the editors bolding of the text suggests a conclusion that is probably unwarranted.
Am I wrong?