I don't think it is chutzpa. It is indifference. (Maybe indifference as a way of survival). People with some decision power in Israel, are either disconnected from the reality that happens 20 km eastwards, not wanting to compromise on their relative calm between some their latte and their next weekend in a Spa in the north of Israel, or either some messianic fanatics.
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UN envoy: Iraq's political crisis helps extremists (AP)
from the article: Only gall and nothing more