Here are some of my thoughts on this issue.
Modern Israel is definitely not the same thing is ancient Israel. Although I do believe that Jews have a special place in my postmillennial eschatology (cf. Rom. 11), I do not believe that the nation of Israel today is any more special than any other nation. I am not a Christian Zionist.
That said, I do think Israel stands out in the Middle East like a light shining in the darkness of Islamic tyranny. Compared to all the nations around them, Israelis stand on the moral high ground because they adhere to principles of liberty and justice.
Understanding the history is critical to an evaluation of what must be done today. The whole 20th century history of the Israeli-Palestinian conflict has been convoluted and harmed by first the British mandate in which they attempted to appease the Arabs while making promises to the Jews and then later -- after the UN did the one good thing in its history when it voted to partition Palestine in 1947 which paved the way for the establishment of a Jewish state -- the UN which is dominated by countries that hate Israel and hold it to a double standard to this day. When Palestine was divided and the Jews established Israel, large numbers of Arabs fled despite Jewish calls for them to remain and live in peace as neighbors. The surrounding countries, notably, Jordan, Egypt and Lebanon, refused to accept those Arabs as citizens, instead preferring to keep the issue alive by forcing the refugees to live in camps which exist to this day. The injustice of those camps is evident to all, but the Arab countries could have resolved that issue in the late 1940's rather than perpetuating their misery to the present day. As soon as Israel declared its independence, the Arab nations declared war. They have done so repeatedly since and lost every time. Israel is understandably of the opinion that they can count on no one but themselves. America has supported Israel through the years and developed close ties, but America's interests and Israel's do not always converge. America felt guilt over the Holocaust and that event has left a deep impression upon the psyche of Americans and Israelis. Never again. The Israelis have dealt with terror and war for over half a century and persecution for millennia. I do see the hand of God judging the Jews for their unbelief in these things, but I also see the clear evil of those who would destroy the Jews. The Palestinians, meanwhile, have resorted to terrorism to accomplish their aim of an independent state. A Palestinian state would certainly be a desirable thing in the sense that each group of people in the world may reasonably be expected to govern themselves. But given the past history and ongoing state of war, Israel's right to self-defense trumps any Palestinian claim to statehood. Terrorists should not be permitted to come to a negotiating table as if their hands are clean. Political violence should not be rewarded with a seat at the table.
That's my

Although it is historical fiction, I recommend reading
Exodus by Leon Uris, which traces the struggle for a Jewish homeland from the 19th century to the 20th. While the Jews as a people may be criticized rightfully for their unbelief in the Messiah and in other regards, yet they hold the moral high ground in the Palestinian conflict and a just approach to peace in the Middle East must take that into account.