This still exists in 2015

Well, first I'm going to say I don't agree with Israeli policy, I find it appalling. So much that I refuse to visit the country until things start to improve.

But your analogy is off quite a bit. Israeli was most definitely not a bully in 1947. Think of Israel as the scrawny teacher's pet. It's more like 5 kids (Jordan, Egypt, Syria, Lebanon, and Palestine) started picking on the one kid (Israel) and bloody his nose. So the teacher (the West) says, "you can't do that," and gives the one kid a knuckleduster. He beats them all back when 4 out of 5 of the kids (Jordan, Egypt, Syria and Lebanon) say, "fuck this, I don't wanna get hit again," leaving the one to fend for himself. Two of the kids (Jordan and Egypt) end up making peace with the one (Israel), and the teacher (the West) ends up giving them knuckledusters too. They pretty much leave to do their own thing. The other two kids (Syria and Lebanon) end up saying, "I'm getting my big brother (Iran)." The teacher's pet (Israel) ends up knocking the remaining scrawny bully to the ground and says, "stay down." But the remaining two bullies and now the big brother keep on egging him on, but hell if they're going to actually get in the middle and help out. So he keeps getting up and throwing another weak punch.

Now 60 years have passed, the teacher's pet is all grown up into a tough adult, but the scrawny bully hasn't changed much. He stays down for a little, but every time the teacher's pet starts to put his knuckleduster away, he gets hit. A part of the teacher's pet just wants to end this once and for all forcefully (the far right and settlers), but the rational part of his brain wants to find a better solution once the scrawny bully stops attacking (the majority of people). The scrawny bully doesn't remember how this all started, and is pissed off that he keeps getting pushed to the ground. The teacher keeps telling them to make peace, but isn't paying much attention. And the sideline bullies keep crying foul and taunting the teachers pet while the scrawny bully gets walked all over.

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