Backing up the argument:
Israel is a small state with a small population that is surrounded by countries that wish for it to be uprooted from the region.
Although Israel's security environment has improved, particularly after the collapse of Saddam Hussein’s regime in Iraq, the fundamental asymmetry that has always characterized Israel's strategic position in the Middle East remains unchanged. In the regional turbulence which has increased as a result of the war in Iraq, Israel's miniscule territorial size and small population could present an irresistible target of opportunity for yet another Arab leader seeking to divert attention from internal pressures.
The Islamic Republic of Iran, which has non-conventional abilities, continues to declare its rejection of "the Zionist entity" and the peace process, while supporting and working closely with terrorist groups such as Hamas and Hizbullah. Its leaders do not hide their wish that Israel should be destroyed.
Even if the IAEA, with the backing of Washington and the hesitant Europeans, were able to halt Iran's march to nuclear weapons before it crosses the point of no return, this would reduce but certainly not end the threat to Israel's survival. As a result, there is no basis for considering a tradeoff linking Iran's illegal nuclear program with pressure on Israel to abandon its deterrence.
( See background )