What to do about the future of Israel is anyone's guess but the establishment of the Jewish state was a mistake. However, I'm not advocating the overthrow of Israel because the Islamic states around it are even worse, but barely worse. The problem is that in any nation when you create a system where members of one religion has superior rights over those of other religions it is a situation that leads to war.
Case in point - Israel. Even with one of the most advanced cultures on the planet, and having been persecuted and slaughtered themselves, in less that 60 years it is clear that the Jewish state has learned nothing and Israel has more of a desire for war than it has for peace.
Israel treats all non Jews like they are vermin. The rest of us are subhuman and our lives don't count. When you look at the way Israel treats it's neighbors and the non Jews within it's borders it is clear to me that they have formed a mentality that they thing they really are God's chosen people. Since God is fictional they are at best the chosen people of their own fictional deity. As the founder of the Church of Reality I can claim that we are the chosen people of the Flying Spaghetti Monster but that claim is as fictional as Israel's claim.
Jews in other countries are more humble and socially adjusted and they are normal productive members of society. They respect other people and they don't take themselves seriously the way Israeli's take themselves.
When I listen to what the country of Israel is saying they have no regrets about the number of Lebanese they kill and these other people are in the way of Israel's goals. Israel complains about kidnapping of it's people but when they kidnap 1/3 of the Palestinian Parlament they call them "detainees". Like Islamic terrorists Israel has its own death squads that hunts down and kills people who don't support their agenda, including their own leaders like Yitzhak Rabin.
The problem isn't with Judaism itself as much as it is with the idea of having a society with a superior class and an inferior class. It creates the illusion that they are actually better people and it create an imbalance that tends to lead to war as the oppressed rise up against the oppressors.
For a culture that is over 5000 years old you would think that after being both oppressed and oppressor that the Jews would get it. However - they don't.
What is the solution? I don't know. But the solution has to be a government in the region where all people have an equal standing. The state of Israel as a Jewish homeland where Jews hold superior status must end. This is true of Islamic states and Christian states as well.
Now I have to figure out who's going to kill me first for this opinion. Will it be Jewish, Islamic, or Christian death squads?