And Israel isn't an asshat?
Most countries get nuclear weapons for the same weapons: Respect (prestige) and as a show of force to neighbors.
Iran and N.Korea can be asshats for not following it, but so would Israel honestly.
The only difference is they're on different sides
And of course it won't deter Palestinians given their location and proximity - nuclear weapons aren't going to be used in those situations.
And Tel Aviv is a target in what way? To cut off government, sure. But if they were going to invade, they're coming from many directions and 'liberating' a holy city would be pretty big.
I'd suggest a visit to Israel and a check out at their defense and strategy in the area anyways. Interesting stuff though I doubt this is the best time to go.
Again that is why I don't think its that big of an issue - i think its more important that nuclear weapons in the area means, their is a bigger chance they are used for the wrong reasons or enter the wrong hands.