FROM THE MOMENT of its birth, Israel, a tiny state by any standards, has been surrounded by 160 million Arabs determined to destroy it. When not engaged in outright warfare, Israelis have been the constant target of terrorists. Their homes have been destroyed, their loved ones murdered, sometimes with a cold, deliberate brutality. The smallest Israeli children are routinely taught never to pick up a bag or package that they see lying somewhere—it could contain a bomb. The terrorists have been supported by and taken refuge in Middle Eastern states as diverse as Tunisia, Algeria, Libya, Kuwait, Iran, Iraq, Saudi Arabia, Syria, Egypt, Jordan, and Lebanon.

On the other hand, Israelis have driven Palestinians from their homes, confiscated their lands, and arrested and held them for long...