Israel definitely doesn't need the aid, but they do serve as a better ally than most Arab nations.  For the most part, Israel is our proxy nation.  They do our dirty work for us.

The problem is that they go too far in that direction sometimes.  Because of their overreactions, they also serve well as a scapegoat for Islamic extremists.

Despite all the attention that the Israeli-Palestine conflict gets, most Arab nations don't really give a shit about the Palestinians.  If they actually did, they'd do more for them (other than funneling arms to them and supporting extremists).  Iran doesn't really care either.