Israel is the leading democracy in the Middle East.
considering that Israel keeps the entire population of the Palestinian Authority under occupation and impairs Israeli Palestinians’ civil rights, the fact that Israel is the region’s leading democracy says more about the lack of competition than the awesomeness of the Israeli democratic process.
It has made peace with the majority of it’s neighbours,
that’s not true. Israel has borders with four states: it has diplomatic relations with Egypt and Jordan, it does not have diplomatic relations with Syria and Lebanon (possibly because Israel occupies some territory of theirs).
it is fighting a terrorist organisation intent on destroying it. That’s why we support it
Syria, Iran, Cameroun, China and other states are all fighting terrorist organizations. That doesn’t mean they do it should get the UK’s automatic support.