Whilst I understand the premise of Israel's creation, the way they and other countries has gone about it has been, and is, appalling. I don't really care if some UN Resolution did decree that Israel could be a nation - accepting them as a member of the UN straight after the massacre of Deir Yassin and the dispossession of 900,000 Palestinians, who weren't allowed to safely return to their homes, is an abhorrent disregard for human rights, which the UN is supposedly meant to be protecting. And let's face it, the only reason they were accepted was because of their strategic position for western powers to gain an ally in the Middle East, and the West would have felt bad about the whole Holocaust. So their creation was flawed from the beginning.
Add to that their continued disregard for the Palestinians and other Arab nations (ie, the taking of more territory in 1967 and the destruction of Lebanon, just so they could push the PLO further from the area), as well as other horrible things, such as the Sabra Shatila massacre, I don't think that Israel has a right to exist in its current form. I'm not condoning the response of Arab nations (they really didn't give a shit about the Palestinians either), but they were so terrible at warfare, it wasn't funny. I understand that Israel was and is paranoid, being surrounded by enemy nations, but adding wood to a fire isn't going to help their 'plight'. And continually treating the Palestinians like refugees in their own land is so wrong it's not even funny. I'm not surprised the Palestinians and other sects turned to 'terrorism' to get their message across, and to be noticed, since many powers completely ignored them. Assassinating just about every mediator that tries to alleviate some of the tension and conflict doesn't help either.
As I said though, Israel isn't the only one that has been in the wrong, but I'd say that proportionately, they've done worse than any other nation in the area. So, I do think that Israel has some right to exist, but not in its current form.
As far as the culture, area and general people go, I'm sure it's all fine (don't really know much about any of these) - as is with any place.
EDIT: Since the big thing was the Jews going through the Holocaust, how is dispossessing an entire peoples showing any sense of development? You'd think that since they went through some horrible stuff, they'd at least be slightly understanding and cautious not to do the same to another group of people...