I think Woolfe999 may have unwittingly gotten to the crux of the matter by saying, "It may well be true that neither Egypt nor Syria planned to go beyond the Sinai or the Golan Heights, respectively. However, the Israelis were definitely afraid of conquest. It's how they perceived the situation which matters here."
Because human perception is exactly what matters here. As Mistrust begets more Mistrust on both sides. Which is right now, IMHO, is the main Israeli mistake and danger as the world and technology changes.
Israel has a justifiable fear of being over run by the Arabs and the odds are very stacked against Israel on a population basis. Some 300 million Arabs in the mid-east region against only 7 million Jewish residents inside Israel. What insures Israeli survival is the the best military in the mid-east, that even today could beat the combined militaries of Egypt, Lebanon, Syria, Jordan, Iraq, and Iran. The down side is that the Israeli economy could not afford to maintain such a military and keep modernizing it without the help of Uncle Sucker.
Which exposes two other Israeli problems.
1. To retain the Israeli military hegemony doctrine into the future will become increasingly difficult. As that Israeli doctrine is dependent on Uncle sucker perpetually giving Israel more modern weapons than the combined militaries of the Arabs can acquire. As Arabs with oil money can now afford to build up their militaries and the economy of the USA can't afford to keep matching the spending. Which partially explains why Israel is so fearful of Iran.
2. Being over run by Arab armies is not the real immediate Israeli problem, and terrorism is. Circa the year 2000 and before, the the main Israeli terrorist threat was in the suicide bomber, or Palestinian protesters throwing nothing more leathal than rocks and bottles. Easily contained by the Israeli tactic of walling themselves in and Assad style inflicting disproporanate on any and all protesters. But now anti-Israeli terrorists have acquired rockets, that leap over walls, even though most of their guidance systems make them horribly inaccurate. And when the payload is conventional explosives, most of them simple land in farm fields and ineffectually blow a small crater in the dirt.
But the start of that use of slightly better rockets, is now in its infansy. As, now there are three disturbing trends for Israel. (1) The government of Lebanon, after the rape of Lebanon in 2005, is stockpiling longer range and better missiles in very large numbers. Careful not to use them against Israel, but Israel has also learned its lesson, in terms of putting Israeli boots on Lebanese soil. As its likely other Arab Governments will do the same. As they can also buy very modern anti-tank missiles which is the main stay of Israeli military ground power. (2) But the real threat to Israel is not Arab states and their militaries, and lies in the the Stateless terrorist. Who will sneak into Arab States, lauch terrorist missiles into Israel, and hope Israel retaliates against their neighbors. Which is now already happening in the extremely sparsy populated border between Israel and Egypt. As we can expect more and in more locations in the future.
(3) At least for now, Arab and Al-Quida rocket technology is limited to conventional explosives, but for how long? Poison Gas and biological weapons are long established techologies and well within Al-Quida technical capacities. Nor are rockets the only way to deliver them. Pin point accuracy does not matter nor do terrorists care about points of legality. In short, and especially regarding the Wolfie9999 perceptions of Stateless terrorists, Israel is the enemy that must be destroyed.
In short, and Woolfe9999 is 100% right, perceptions is a two edge sword that cuts both way.
As its always been my position on this forum, current Israeli government strategy is suicidal. As Israel seeming delights in driving Arab hatreds ever higher simply because they have the current military hegemony. As I maintain long term Israeli survival hinges
on Israeli Arab co-operation that is mutually beneficial to all nations in the mid-east. And the first step needed on the Israeli side is to co-operate in forming a Palestinian State. As the mid-east has one common problem, namely lack of water. Israeli Arab co-operation in water projects, with Israel having the bulk of engineering talent, and Iran supply the nuclear energy for desalination plants could do much to increase the supply of mid-east water.
While at the same time driving down the PERCEIVED mistrust issues terrorist need to continue to operate anywhere.