This is the argument put forth by a few ultra-Orthodox groups who interpret both Torah and Jewish thought in general extremely narrowly.
The majority of Jews do consider Israel the Jewish State, and do not subscribe to the erroneous notions that a Jewish State should wait on the coming of the messiah, or be a theocracy-- ideas which are by no means required by Jewish Law.
Now, that doesn't mean that the State of Israel, as it stands, is messianic, or is the fulfillment of any prophecies, or even is anything close to an ideal Jewish State. It has many problems, both internally and externally, and requires much work. But it is not nothing, either: that Jews once again have a political dominion within the boundaries of the Land of Israel is a step forward for us, and may-- just may-- be a first small step on the long, long road toward bringing about the coming of the messiah (by which statement I may be identified as a religious Zionist, if somewhat untraditional in my mixture of religion and Zionist politics).
Those who deny the Jewishness of the State of Israel, or say that it is bad because the messiah has not come yet are radical fundamentalist zealots. Their position is not normative.