"Israel doesn't threaten any country with anything -- never did," Olmert told SAT 1. "The most that we tried to get for ourselves is to be able to live without terror. But we never threatened any nation with annihilation.

OTOH, the one woman play "Golda" has an interesting scene where Golda Mier orders that nukes be placed on planes, and the planes placed on alert with pilots on-board (targets Cairo & Damascus, bombs enscribed Never Again) before even one tank enters Israeli soil.  Israel was facing a tactical defeat on lands it had recently conquered, but far from a strategic defeat that would endanger national survival.

Not conclusive, but it was clear that the Israeli playwright knew her well (she spent lots of time at the underground Dimona nuclear research station in the Negev, one balcony was named after her supposedly).

Given the Iranian history during the war with Iraq (a variety of poison gases were used on Iranians, but they never retaliated in kind) and the Israeli history noted above (assuming it is true), an objective neutral observer would see Isreali nukes as the greater threat.

Add to this the rumored "Samson Option" to destroy all civilization in the Middle East if Jersuleum were to fall.

Best Hopes for Rationality,

Alan