An unsparing piece by Peter Beinart in the New York Review of Books exposes some of the problems in American Jewish debate on Israel. Money quote: 

In the American Jewish establishment today, the language of liberal Zionism—with its idioms of human rights, equal citizenship, and territorial compromise—has been drained of meaning. It remains the lingua franca in part for generational reasons, because many older American Zionists still see themselves as liberals of a sort. They vote Democratic; they are unmoved by biblical claims to the West Bank; they see average Palestinians as decent people betrayed by bad leaders; and they are secular. They don’t want Jewish organizations to criticize Israel from the left, but neither do they want them to be agents of the Israeli right.

These American Zionists are largely the product of a particular era. Many were shaped by the terrifying days leading up to the Six-Day War, when it appeared that Israel might be overrun, and by the bitter aftermath of the Yom Kippur War, when much of the world seemed to turn against the Jewish state. In that crucible, Israel became their Jewish identity, often in conjunction with the Holocaust, which the 1967 and 1973 wars helped make central to American Jewish life. These Jews embraced Zionism before the settler movement became a major force in Israeli politics, before the 1982 Lebanon war, before the first intifada. They fell in love with an Israel that was more secular, less divided, and less shaped by the culture, politics, and theology of occupation. And by downplaying the significance of Avigdor Lieberman, the settlers, and Shas, American Jewish groups allow these older Zionists to continue to identify with that more internally cohesive, more innocent Israel of their youth, an Israel that now only exists in their memories.