When i press button 2 for led1, the voltage at pin 8 (led) is only 2.0v.
If you had a Scope, you would see the output toggling. This is because when i=2, and pin 2 being HIGH makes Output LED go HIGH, but when i=3or4 the switches are LOW then the else{} makes Output LED go LOW.
I have 10k pull down resistors on all input pins.
You will need to turn on the internal pull-up resistors.
pinMode (led1, INPUT_PULLUP);
pinMode (led2, INPUT_PULLUP);
pinMode (led3, INPUT_PULLUP);