I have a theory about Israel. I don't think it's about politics at all. I think it's about gay rights and sex - in particular, gay sex and relationships within oppressive cultures - eg the Middle East, but also referencing his own Catholic upbringing. Let's face it, half this album is about sex, it seems. Tel Aviv is known for its liberal approach to homosexuality and has been dubbed the 'gay capital of the Middle East'.
https://en.wikipedia.org/wiki/LGBT_rights_in_Israel
Here's my interpretation. He makes the theme clear from the very beginning:
"You realize, if you're happy
Jesus sends you straight to hell...
...And should you dare enjoy your body
Here tolls Hades' welcome bell"
Then he says Israel has found a way to simply accept people as they are:
"You've found a middle-course existence
We're all bones and flesh and shell"
Then we have:
"I can't answer for what armies do
They are not you"
- ie this is not about the political/military situation in Israel/Palestine
And then
"In other climes, they bitch and whine
Just because you're not like them...
...The sky is dark for many others
They want it dark for you as well"
- I think this refers in particular to the other middle-eastern countries who, despite the Arab Spring, still take a hardline, ultra-conservative approach to homosexuality and would like Israel to 'toe the line'.
Then he brings back the themes from the beginning - ie human nature, judgemental religions:
"Nature gave you every impulse
Who are virgin priests to tell
Who/how to love
How to live"
CONTEXT STATEMENT: I am neither a bot nor a Morrissey apologist (you can check my previous posts as proof!) - just someone interested in open debate. In fact I loathed WPINOYB and YOR. I think bits of this album are absolutely dire (Who Will Protect Us, I Bury the Living, I Wish you Lonely). But I do think this song is stunningly beautiful and incredibly moving. I also think it hints at some of the torment he's suffered through his own 'humasexuality'. It's a pity that because of his almost pathological need to troll, it will not get the acclaim it should (despite what I believe is the real message, he knew fine well what the reaction would be to calling a song Israel).
Anyway, that's my take on it. Opinions?