This is one of the worst pro-Israel arguments; I can't believe people still make it. Israel isn't going to drop a nuke on the "holy land", where they want to start building Jewish settlements, a few dozen miles from Tel Aviv. No matter how much they hate Palestinians, people don't want to live in an irradiated wasteland.
By nuclear-armed I’m pointing out that they’re a well-funded, first class military, not that they’re going to nuke the place. They’re arguably the second strongest military in the world.
They could have achieved genocide very quickly with conventional weapons and boots on the ground too.
