You are stretching the definition of democracy here, by applying it to a country living, like the US, in such a deep fear of anything outside it's own borders. While being ruled by fear, a country is hardly democratic.
What a load of hooey! By your definition, during WWII, we were "hardly a democracy" because we lived in fear of the Japanese and Germans.
Israels leaders are held accountable. If the public (or their cabinet) feels they aren't getting the job done - elections are held. Hence the succession of different, democratically elected Israeli leaders - Sharon, Barak, Netanyahu, Perez. Funny, every time the palestinians hold an "election", Arafat seems to win. Hmmm. I wonder how that happens. I guess Arafat learned from his buddies Casto and Saddam Hussein how to have an election and win each time.
The terrorism inflicted by Israel on Palestine, heel even on refugee-camps, is inexcusable, because it is perpetrated by a sovereign nation, while the suicide (or homicide) bombers are individuals.
Do you really want to go there?
First of all, the land that Israel now occupies that the Palestinians claim as theirs was obtained (mostly) during the 1967 6 day war, in which Israel defended itself against the Arabs who sought their destruction. Israel decimated their forces in record time, and as a result obtained all of Jerusalem, The Golan Heights, Siniai, the Gaza Strip, and the West Bank.
In short, Israel didn't ask for the fight, but when push came to shove, they dealt the Arabs a humiliating defeat.
The citizens of this land were denied admittance to the countries that lost it, and were left as refugees by them - not Israel. Many have integrated themselves peacefully in to Israeli society and are productive citizens.
Now imagine, if some Mexicans living in Texas demanded that Texas become an independent, sovereign state of Mexicans. It was their land before it was ours, right? Shouldn't we give it back? What about most of the US? The indians were here first. We should return it to them, so they can have their own sovereign country.
Yes, the Homicide bombers are individuals, but they are nothing more than tools of the Arab nations that seek nothing less than the total destruction of Israel. They are taught to hate Israelis without question, and they are taught to kill without question. These leaders do not want peace with Israel. They have been offered deals time and time again (Camp David, Oslow, etc), the last of which (under Clintons tuteledge), had Barak giving Arafat 95% of the land that the Palestinians claim as theirs - and they turned it down. Why? Because they are not interested in peace. Their only desire for a Palestinian state is so they will have a base to which better inflict casualties on Israel.