I really don't know if Israeils believe that this sort of nonsense adis their cause, but I believe it is one of the many instances in which Israeli dramatics actually hurt their cause. Iarael has a serious credibility problem as it is. The only organization that takes Israeli statements at face value is the American congress.
Yemen's vice president reportedly lands in Aden (Reuters)
from the article: Netanyahu: Israel won't negotiate with Palestinian version of al-Qaida