Israel is actually pretty far ahead of the US on gay rights. Gays have been serving openly in the IDF for nearly 20 years. They are legally protected from discrimination, and Tel Aviv is a very gay-friendly city (Jerusalem, not so much). There have been two gay MKs, both from Meretz (a small, left-wing party).
Same-sex marriage, however, is more complicated. The problem is that secular marriage does not exist in Israel - all marriages must be approved by the appropriate religious leadership. Gays, therefore, find themselves in the same boat as Reform Jews who do not wish an Orthodox ceremony or interfaith couples. Fortunately, the same workaround for these groups works for gays: get married in another country. Israel DOES recognize marriages performed abroad, including same-sex marriages.