It's true that religion is tied up with cultural identity (though I'm not so sure about national identity) but there comes a point in which religion is just cultural identity, without any real religious faith behind it. There are quite a few Jews, even in Israel, that fall into this category. Likewise with Christmas/Easter/St. Valentine's Day gifts, church weddings, funerals and the like. They might have religious trappings, but really they're just fashion or social conventions, like wearing a necktie to certain events or driving on a certain side of the road.
The pendulum does swing, but in this case, I think that the entire clock is moving further away from religion, at least organized religion. New-ageism, increasing demands for superficial freedoms, and the rise of tolerance as the supreme virtue have pretty much condemned orgainized religion to extinction. Organized religion demands that it's believers, well, believe a certain creed, and in the mass-customization-I-want-it-my-way world of the future, that just won't work. Once everyone has their own, unique (perhaps solopistic?) "spirituality" the power of religion to move vast numbers of adherents towards a common goal will be gone. And a religion without effect, a religion that can be ignored, isn't much at all.