I don't think the character is a perfect allegory for Israel, mostly because the character changes depending on who's writing him, but the overall character, the parts that are generally consistent through the years, seem similar. It brings a different dimension to Magneto and begs a few questions about Israel. It just struck me as interesting.
BTW, the villain isn't always bad. Javert was the villain in Les Miserables, but he was doing what he thought was right and what the law required of him. It was simply the moral relativism in play that he happened to find himself in an antagonistic role. Likewise with Magneto, he's doing what he sees is the moral thing to do, generally, but the birth of his character was to create an antagonist for Charles Xavier.
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