Your attitude towards holocaust milking seems somewhat plausible, and I'm sure many jews secretly feel similar. The problem I see however is that the longtime effects of a certain behaviour are often completely different and less apparent than shorttime effects. So while Holocaust milking might indeed have the "positive" effects for Israel that you're talking about in the short run, it may at the same time have absolutely devastating effects for Israel in the long run, that are much harder to foresee. In a way, that's exactly what made the biblical prophets so special: They were able to foresee effects that the majority of the population couldn't foresee, making it seem that they had magical knowledge, when in fact, they probably simply took things into consideration that most others didn't. The sad irony is that when overdone, Holocaust milking can even help pave the way for another holocaust.
IDF reservist, 44, dies of heart attack during training (Haaretz)
from the article: Milking Holocaust guilt to keep Israelis home