Yes, It's a sign of a democracy under stress
Having 1/3 of your people exterminated, then surviving through several all-out wars aimed at completing the extermination, and living under constant threat of terrorism for 55 years, it tends to put you a bit on edge, and makes you just a tad paranoid about your security.
Frankly, given the neighborhood they live in, it's amazing that Israel is a democracy at all.
Make the neighborhood safer, and the Israelis will chill out...