I agree that Israel is a military powerhouse. However, including them as a playable nation presents a few challenges. Adding Israel would force a 7th player nation into the game and I don’t want to lose any of the nations I’ve got now (If I would squeeze one out it would be Russia I guess).
In addition, Israel is merely one region on the map. If they are to compete economically with the other nations Israel must have an IPC value of 30 or so! Either that or Israel starts with a huge military advantage.
For now Israel is going to have to remain a powerful neutral nation. It is the most valuable IPC region on the map and it includes a victory city (Tel Aviv). Accordingly Israel will have a very potent mic of military units should someone invade.
BTW: The armed forces of Turkey are no slouches either (2nd largest in NATO behind the USA). They are armed with modern equipment too.
Latest version of the map. It’s very near completion. IPC values are all assigned. The only thing I need to do now is flesh out the Victory cities.

I’ve tweaked the combat system a little. At the end of every round of combat both the attacker and the defender have the opportunity to attempt to retreat any or all of their units. These retreating units are moved to the “disengaged” portion of the battle board. If these units survive an entire round of combat in the disengaged area (disengaged units may not attack) they withdraw from battle and make a retreat move into an adjacent region. Basically a unit gives up its chance to make an attack roll in order to retreat. Submarines may “Submerge” and immediatly move to the Disengaged area after making an attack roll (getting them out of combat one turn quicker than most).
I was looking at some maps of the Middle East and there are roads, highways and railways threading all over the regions of the map. I think adding strategic highways or rail-lines directly onto the map is out. Instead, in order to keep it simple: if you want to use strategic movement pay 1 IPC to the bank and then you may move that unit up to 4 regions (limit of 4 units per turn). Perhaps a tech could improve this ability (advanced logistics or strategic deployment or something).
Getting close to printing this map out and playing a few games.