I work at State and I love it.
If you're looking to get in on the foreign affairs side, it's very difficult unless you are a PMF or a veteran.
If you're looking to do more admin-type work, it's easier to get in.
Telework depends on the office and your duties.
Morale varies by bureau and office. In general, the regional bureaus are considered sexier than the functionals, but the functionals have most of the civil service folks.