> This permanent war economy is perfect for Israeli business owners and for the Israeli government.
This is obviously not true when the IDF is primarily a conscript army. Conscription is bad for business. It is very difficult to run a business when your employees are being conscripted.
Not to mention how much of a disaster all of this has been for Israel's reputation in the world. Trade, not to mention tourism is based on reputation, and other then the defense industry, Israel is not doing well PR wise at the moment.