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An interesting, if misleading article you quoted there by Ruth Wise. I have to wonder if she has actually read Meirsheamer and Walt at all (not just this book, though it would be helpful). What they say is that the 'Israel Lobby' is in fact made up both of Jewish Americans, dual American/Israeli citizens and, the most overlooked and important faction, Christian Zionists.
As for the argument that it 'hurts' US policy, again that is not explicitly what they say. Meirsheamer and Walt are Realists, in foreign political theory lingo, they have a world view that says basically the entire globe is an anarchic system and furthering any other nations goals without benefitting from it is dangerous.
That's an important distinction, I feel. Because just as you have the well publicized and hawkish AIPAC, equally you have left wing Jewish groups, Jewish cultural groups etc who the US helps promote. Anything which does not help the USA and helps Israel is harmful, according to Walt and Meirsheamer, because international politics is a zero-sum game.
Now, the problem is, if you don't believe that, then the hypothesis doesn't hold. As it happens, I don't believe that to be the case, and while I am sympathetic to certain aspects of classical Realism, I think Meirsheamer and Walt's worldviews lack sophistication.
Anyway, onto supporting Israel. There are going to be costs to supporting Israel. It doesn't matter how right you think Israel deserves to exist, or whatever religious or political beliefs motivate you, this is a fact. The problem is of uncritical support, one-sided support, support regardless of what Israel does.
That is what the US needs to change. It needs to recognize some people simply do not like the country or its policies (I have to admit, I don't like its current policies much either) and just because you think they're on the side of right doesn't mean Israel will automatically prevail. In fact, the moralizing black and white dichotomy which seems to grip US foreign policy may be the bigger problem here.
But anyway, the point is that the US needs to think carefully about Middle Eastern policy. Move towards establishing a Palestinian state. Encourage NGOs to participate more in the region, building up a civil culture on which democracy for the region can be founded. Only by being an impartial actor in the region can the USA gain any respect as an arbiter in the conflict. Any other neutral nation lacks the resources to intervene in such a way. Standing by the side and going "well Israel is right and we must support it" is a conflict generating policy, because it solves nothing of the underlying systemic problems which cause conflict.
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