It is possible, even likely, that Israel could survive an Iranian nuclear attack physically — but not psychologically. It is doubtful that Israel could carry on as a sane, not to mention democratic, society. This is the great insight of Ahmadinejad.
An Israel assaulted in this way would react, of course. But it might not react in the predictable, proportionate, tit-for-tat fashion that the realists have laid out.
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Earlier posts about Israel and Iran here, here, here, here, here, and the linkdump is here.