In a sense you're right - but in reverse. The existential threat is real - as real as anything. Its reality causes a defense mechanism among Israelis - first of all to survive. All Israelis wish not to control over Arabs. Yes, even the right, even the settlers, even those who want Judea and Samaria. You can call our desire of these lands greed - but we see them as ours, so I'd call it "fighting for that which belongs to you". In any case, 80% of Israelis will agree to peace and compromises once Israel's security is assured by its neighbors (NOT by the U.S.). Right now, it simply isn't. As a demo of the existential threat, consider this: Israel's military might is the only thing that keeps it from destruction. That's precisely why we need it. And the Jews worldwide need it too - don't fool yourself to think that America or any country gives a damn about us. They would have destroyed Auschwitz in 1943 the LATEST, if they did.
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IDF raids radio station in Hebron (Haaretz)
from the article: The connections between Israeli greed and the existential threat