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It's the "destroy or be destroyed mentality" that is the problem with Israel. It just means things will never end. Not only that, but it's only isolating Israel further and further from the International community.
As for Judaism, probably the biggest danger to Judaism outside Israel is actually Assimilation. I myself am the product of Jewish mother and Catholic Father. I have some feeling of Jewish identity, but I doubt my own children ever will.
Jews are simply going to assimilate themselves out of existence, until only the Orthodox and Chasidim are left. Jewish identity outside Israel is only weakening. How many people speak Yiddish anymore?
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