I think you're looking too hard for an answer. Human beings respond stongly to scandalous things, it has very little to do with the changing demographics, or an identity crisis, in Israel. What about the Janet Jackson "wardrobe malfunction", the Danish cartoons, "The Satanic Verses", etc. etc. Lots more examples, I'm sure.
US rally shows support for ex-Marine held by Iran on spying charges (AP)
from the article: And supposing they did drink blood?