Will, I love the fact that you posed this question in the Philosophy section. You are awesome!
No, I definitely don't think Magneto is an allegory for Israel, and if he was intended to be so, I don't think he's a good one.
Look, I can't defend every action Israel's ever taken vis-a-vis the Palestinians and other Arabs, and I won't try. But overall, I think they've shown great restraint. They have the most advanced military technology, and the best-trained soldiers in the Middle East-- for that matter, easily the equal of some of the European nations-- and the Palestinians are armed with with homemade rockets, second-hand third-rate Russian missiles, some suicide bomb vests, a few guns, and some rocks; yet the Palestinian conflict has dragged on for years upon years, with a body count that hasn't hit five thousand yet. The US killed more Iraqis than that the first week of the damn war. And this confrontation with the Palestinians is mostly dragging because the Palestinians can't find a leader they can all rally around long enough to make the land swap for the less than 2% of the land still in dispute, to wrap this shit up so they can set up their state, and the IDF can pack up and get home, and everyone can get back to the business of quarreling amongst themselves about religion.
I think if Israel really were like Magneto, they would have long ago exterminated the Palestinians altogether, and would have gone on to brutally subjugate and/or decimate the rest of the Arab world.
We may have sympathy on Magneto for his origins as a Holocaust survivor, but the fact that he has taken Auschwitz as justification for a quest for world dominance and decimation of homo sapiens-- something not impossible for a charismatic mutant of his omega-level power-- is indicative that he is simply not sane. His actions regarding world conquest are immoral and unethical-- and from a Jewish standpoint, utterly incompatible with either the halakhah (Jewish law) or traditional Jewish moral philosophy.
But overall, Israel has allowed this confrontation to drag on because they don't want a bloodbath. Even a bloodbath of their enemies. Magneto would never scruple so.
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Dull sublunary lovers love,
Whose soul is sense, cannot admit
Absence, because it doth remove
That thing which elemented it.
(From "A Valediction: Forbidding Mourning" by John Donne)
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