OK so another Israel bashing thread.
Using defined terms then no, its not a failed state. "A failed state is a state that has lost its ability to fulfill fundamental security and development functions, lacking effective control over its territory and borders. Common characteristics of a failed state include a government incapable of tax collection, law enforcement, security assurance, territorial control, political or civil office staffing, and infrastructure maintenance.[2] When this happens, widespread corruption and criminality, the intervention of state and non-state actors, the appearance of refugees and the involuntary movement of populations, sharp economic decline, and military intervention from both within and outside the state are much more likely to occur." I've cut and pasted this definition.
Failed states include Afghanistan, the Central African Republic, DR Congo, Haiti, Libya, Mali, Myanmar, Somalia, South Sudan, Sudan, Syria,and Yemen. There are concerns that Lebanon and South Africa are almost there. Yes someone will say this isn't about them, but for the combative posters my response is those are examples of failed states. Not that anyone really cares.