>>Lubavitchers have referred to the founding of the Israeli state as "the beginning of the flowering of our redemption."
Not true. The Lubavitcher Rebbe was vehemently opposed to using that expression to refer to the secular state of Israel. The Rebbe's position is based primarily on concerns for the safety of the Jewish people living in Israel and around the world. Lubavitch supports Israel in terms of it being the home for millions of Jews but does not ascribe any holiness to the state itself and in fact views it as having delayed the true redemption.
I think they would agree that the redemption is delayed by the sinful laws of the Israeli state (permissiveness in violation of Kashrut, sexual immorality, etc.) but they also feel that the ingathering which Israel represents is not in itself a bad thing, but a wonderful phenomenon.