I have never been to Israel. But for a small country that has always existed under a threat of the destruction, not just by the county of Gaza, but occupied Lebanon, Iran, and basically some large population of every surrounding Muslim nation, they've done quite well. I'd say very modern. And given the penchant of the polity to protest and a free and rambunctious press, I'd also say very liberal.
You may have different definitions of these words.
I don’t think an open apartheid state that regularly supports the illegal dispossession of homes from civilians for a project of religious conquest can be considered to be liberal or modern or functional. But I suppose if I didn’t think Palestinians existed or were deserving of human rights then I could arrive at your same conclusion.
Personally I’d rather visit Jordan or Lebanon than Israel any day of the week.
You may have different definitions of these words.