You've got that spot on, I think. But first things first - as always when commenting on these issues, I'll start by stating that I am not, in any way, anti-semitic; I am not against the right of Jews to live and enjoy life and freedom just like everybody else, no matter what their religion or race. I am, however, against the state of affairs that is largely being perpetuated by the State of Israel.
The existence of modern Israel has come about based on a combination of the bad conscience of the Western powers af WWII and the myth of the lost homeland of the Jews. Yes, there was once a nation called Israel, as far as we know - but that nation was itself based on the conquest of a previous nation followed by genocide of the previous inhabitants (if we are to believe the Bible, and who would doubt the Holy Scriptures, eh? Certainly not the Jews, I would have thought). Perhaps we should go and dig out the Filistrians and reinstate them in their rightful homeland? All nations are ephemeral in nature, Israel included.
As for the role of the bad conscience of the West: however atrocious the Holocaust was, it is now part of a history that is getting ever more remote. I think we have learnt the lesson of that and many countries - Germany not least - have redeemed themselves. What happened back then should not be used as a carte blanche to excuse the present days state of Israel for any and all actions they desire to take. On the contrary, the memory of these horrors should inspire the citizens of Israel to be better than their opressors - and far better, not 'only just'. But there is a far more practical consideration: the might of the West is in decline. Soon nations like China and India, and later other nations who have no particular issue either for or against Israel, will play a role that may change the way Israel is being supported beying reason. In light of this, would it not be sensible if Israel started making friends with their neighbors? They can - but not if they allow their own religious extremists and their selfish landgrabbers to rule the country like they seem to do now.