Max,
It's a reality based assessment. Israel was definitely in the middle of a civil war, before all this started.
I think though, that it's the bigger picture that is even more interesting.
One thing worth considering is the evolution of diaspora Judaism.
Europe has geographically distinct divisions that resulted in the various tribes developing into nations that are as much or more a function of their geographic locations and boundaries, than tribal origins. England and Ireland are islands, Spain and Italy are peninsulas. Greece is both. France is mostly bound by the sea and the Alps. Switzerland is the Alps. Germany and much of Eastern Europe are still significantly forested, or at least within cultural memory. With all the dark elements ingrained.
Asia, on the other hand, is fairly open.
So while European culture has developed as a bunch of national nodes, with well developed animosities toward each other, such that the boundaries were fairly clear, Asian tribal relations had to be more fluid and more about genealogy than geography. So the nodes and the networks were more organically related. Why Russia, about as large as all of Europe, can function as a single nation.
The consequence is that Western Jewry served as a significant part of the networking between those national nodes. The traders, bankers, doctors and other intellectuals that benefited from an international perspective, along with their tribal affinities that allowed them to sustain that broader network.
Therefore being a big part of the cosmopolitan outlook that was the basis for modern Western liberalism.
While the Eastern Jews remained defined more by their core tribalism, which is inherently conservative.
Then after Germany lost WW1, it retreated into its tribal core, which amounts to the communal super organism. One aspect of this dynamic is it is intolerant of anything qualifying as foreign. Essentially it is the immune response of the super organism. So the Jews, as well as Gypsies, gays and any other group that could serve as scapegoats were massacred.
The problem this created, with the creation of Israel, was these two polar opposite groups were all thrown together. The most cosmopolitan Westerners, with the extremely conservative, tribal Easterners. So long as the Westerners maintained control, the country was the epitome of the modern state, but as you point out, these people are not the most prolific breeders, while the more tribal ones were more fertile.
Not only that, but this budding theocracy had its economic foundation provided for it by rich Jews all over the world and didn't have to spend as much of their lives out toiling in the fields, as most such tribal people do. So they could sit around and pray more.
So now the conservatives are getting the upper hand, but unlike another theocracy in the region, do not have enormous oil fields to support their religious self centeredness.
Then there is the fact that fundamentalist Americans support Israel because it foreshadows the Second Coming. Not that they really care for Jews.
So it will be interesting to watch the various bubbles being burst.
One that seems to currently be bursting, is the woke crowd is backing Palestine, while their professional management class enablers are backing Israel.
Here is an essay I wrote over the summer, trying to put some of the pieces together, of why our world is so delusional;
https://medium.com/@johnbrodixmerrymanjr/why-culture-is-not-reality-7cb4f0867a4d