Traducteur stole much much of my thunder. However, if Israel is such a tremedous success, why is still receiving well in excess of $3 billion each and every year from American hard-pressed taxpayers. Also, why have nearly one million Israeli Jews emigrated elsewhere and why has immigration to Israel virtually dried up?
Also, the following renowned Jewish Israelis vehemently disagree with your assertion Arab Jews were "expelled" from Arab countries:

(1) Historian Avi Shlaim, born into an affluent and influential family in
Baghdad: "We are not refugees, nobody expelled us from
Iraq, nobody told us that we were unwanted. But we
are the victims of the Israeli-Arab conflict."
(Ha'aretz, August 11, 2005)

(2) The late Yisrael Yeshayahu, speaker of the Knesset:
"We are not refugees. [Some of us] came to this
country before the state was born. We had messianic
aspirations."

(3) Shlomo Hillel, former minister and speaker of the
Knesset: "I don't regard the departure of Jews from
Arab lands as that of refugees. They came here because
they wanted to, as Zionists."

(4) During a Knesset hearing into the matter, Ran Cohen,
member of the Knesset: "I am not a refugee….I came
at the behest of Zionism, due to the pull that this
land exerts, and due to the idea of redemption. Nobody
is going to define me as a refugee."
(Ha'aretz, October 8, 2004)

Any Jew of Arab origin who feels he or she has a legitimate grievance against an Arab country should pursue it under international law. Significantly, for obvious reasons, the state of Israel opposes such an initiative while the Palestinian refugees (again, for obvious reasons) would welcome it. I also remind you that any suffering Arab Jews experienced at the hands of Arab states (following the expulsion of 800, 000 Palestinians in 1947/48; a further 25,000 just before and during Israel's 1956 invasion of Egypt – in collusion with Britain and France; and hundreds of thousands more driven from their homes by Israel during and after the 1967 war; the Lavon Affair; the Cohen spy affair etc.) was not inflicted by Palestinians.
The two issues are entirely separate.

E.g. "…Tel Aviv – The Silicon Wadi?
Tel Aviv (literally: Dumb-Hill of Spring) was plain desert at the beginning of the 20th century. Today, in the advent of her 100th year celebrations in 2009, it is the Silicon Wadi (Valley) of the Mediterranean since 1990's.

It is United States that profits from Israel, rather than the opposite. Israel gets nearly 3 billion USD from USA annually, but open brain drain is its prerequisite. Astonishing number of 25% of the Israeli researchers have moved to the United States – and this figure does not yet include the people with double citizenship. The next largest drain of researchers are 12.2% from Canada, 4.3% from Netherlands, and 4.2% from Italy.

Before the Second Intifada, there were nearly 200 Israeli companies listed in the Nasdaq, at the Intifada the count dropped to 70. (The number is still greater than from all the European countries combined). It is said that the dollars are green since the Americans pull them down from the tree raw and fresh. The start-ups are imported straight from the garage, and scaling up of production in the "conflict hotspot" has been considered impossible. But the new Millennium has brought a change in tide.

In Israel, 20% of citizens possess a higher decree from the university. Over half of the export from Israel are High tech products (32 $ billion in 2007), compared to the 25% average of the OECD countries. Israel's GDP is about $200 billion. She exhibits second highest output of new book per citizen and more patents per person than any other nation. Nobels, by definition, are awarded to the people who have made services to the whole world, and 21% of the prizes have gone to this population of less that 17 million, taking both Eretz Israel and galut (diaspora) into account.

The population of Arabs under the Israeli government increased ten-fold in only 57 years. Palestinian life expectancy increased from 48 to 72 years in 1967-95. The death rate decreased by over 2/3 in 1970-90 and the Israeli medical campaigns decreased the child death rate from a level of 60 per 1000 in 1968 to 15 per 1000 in 2000 at the Westbank. (An analogous figure was 64 in Iraq, 40 in Egypt, 23 in Jordan, and 22 in Syria in 2000). During 1967-88 the amount of comprehensive schoold and second level polytechnic institutes for the Arabs was increased by 35%. During 1970-86 the proportion of Palestinian women at the West Bank and Gaza not having gone to school decreased from 67 % to 32 %. The Gross Domestic Product (GDP) per capita in West Bank and Gaza increased in 1968-1991 from 165 US dollars to 1715 dollars (compare with 1630$ in Turkey, 1440$ in Tunis, 1050$ in Jordan, 800$ in Syria, 600$ in Egypt. and 400$ in Yemen).

Also, the biggest generic drug factory in the world was recently established in Israel. Generating US$7 billion in annual revenues, Israel's Teva Pharmaceutical Industries Ltd. (TEVA) is the world's largest generic pharmaceutical company. That is: to cure people with less money. TEVA makes generic versions of brand-name antibiotics, heart drugs, heartburn medications, and more – in all close to 200 global generic products, 700 compounds, and more than 2800 dosage forms and formulations. TEVA's pharmaceuticals are used in some 20% of U.S. generic drug prescriptions. Examples of TEVA's generics include lower-cost equivalents of such blockbusters as anti-depressant Prozac and cholesterol drug Mevacor. Nevertheless, in biotechnology and original drug development, about 400 experimental Israeli drugs have been approved or accepted in clinical phases.

As an example, the supranational Intel transferred the mass production of Centricon-processors to Israel, where ~20% of citizens possess university decrees (ranking 3rd in the world) but where the environment respects patents and are not plagiating every item they produce to others like the rocketting China.Intel was also offered an overall tax rate of 10%, which is about three times lower than that of US.

How has the United Nations reacted to such an impact especially in the field of medicine and health care? One-fourth of the judgements of the Human Rights Commission strike Israel.

There is a pious smoke screen on the industrial countries mediating peace to the Middle East. A collaboration between the Jews with their technology and science and Arabs with their oil and loyality has been a great nightmare for the Western countries. The intimate friendship between the cousin "races", as officially declared by Chaim Weizmann and Emir Feisal in Versailles peace conference, was deliberately mutilated. The Second Intifada could be called The Oslo War.

Aviv is Hebrew for "spring", symbolizing renewal, and tel is an archaeological site that reveals layers of civilization built one over the other. The Jewish population has been such a layer of native culture not only in the Palestine, and the expulsion of the native Sephardi and Mizrahi Jews from various Muslim countries since 1948 has been al nakba, catastrophe, for these societies…"

Pauli Ojala, evolutionary critic
Biochemist, drop-out (MSci-Master of Sciing)