The Dream State
I just finished reading "The Moral Lives of Israelis: Reinventing The Dream State", by David Berlin. I recommend it. If you want to get a feel for the craziness - the surrealistic reality - at the heart of the Israeli body politic, the army, the religious right, and the (more and more confused) liberal elites, I recommend this book.
(Though it doesn't predict the current "housing" demonstrations in Israel, the frustration and disappointment displayed therein is presaged in these pages.)
Full disclosure: the author is a friend of mine. But its a good book anyway! A real page turner, yet thought provoking at the same time.