The proposal and the response are quite interesting though I tend to think the response is more practical.
I think as with the fascists and militarists of WWII, they will happily live with Israel and quit attacking the US when they are beaten. They being not just the soldiers but the societies from which they spring.
How can anyone be surprised that since the Iraqis did not miss as much as a meal during our overthrow of the former government, that they are not particularly compliant. The Germans that were just happy to survive the winter of 45-46 were naturally more compliant toward the people who controlled the food supply. Certainly the cultural differences are great in the current case and post WWII Germany, I am not so sure they are any greater than the US and post WWII Japan.
Obviously, what the Ark of the Covenant is to the Jews, arms and ammunition is to the musselmen.