Doesn't Israel have a peace treaty with Jordan as well? Also, Cyprus likely has no issues with Israel, most of Saudi Arabia is unoccupied desert (correct me if I'm wrong), Iraq kind of needs to focus on itself for the time being, Lebanon knows that going to war would be a very bad idea (for the most part), Yemen... isn't much of a player... and with just those you've shrunken the Arab "big guy" by quite a bit. Iran's probably the only viable threat.
Take in to account the weaponry Israel has at its disposal, the fact that it doesn't share a border with Iran, the fact that more countries support Israel than Iran... no, I think it is safe to conclude that Israel is the "big guy" here.
When it comes to the Middle East, Israel is not the big guy. it is the stronger guy. there are nations in the middle east which number in dozens of millions, in some cases more than 80 million strong. Israel today has about 6 million Jews. it is a tiny drop in the ocean of the middle east, which numbers hundreds of millions of Arabs, Persians, etc.
there are nations in the middle east which are armed with the best Western technology. have a military with incredible size, may have petrol to have a leverage on regional politics.
Israel in the last 2-3 decades has began to be viewed as the 'bigger guy', because the governments and armies of various mid eastern nations, had to face with the fact and regional reality, that they cannot defeat Israel militarily and cleanse the middle east of an Israeli state. a couple of these nations signed a peace treaty with Israel (Egypt in 1979 and Jordan in 1994). from the 80s onward, for the most part, Israel has shifted from dealing and fighting organized armies to a war against terrorist organizations backed by stronger mid eastern states, such as Syria and Iran, nations such as Syria choose to empower the major terrorist organizations in the region to now fight a proxy war for them, and to maintain their classical hold on nations such as Lebanon. for a while now Israel has been fighting a long battle against terrorist organizations which is conducted in unconventional terms, and involves civilian population in the area of conflict. from this stage on, Israel has turned in the minds of many from the maverick military society into the bigger guy who pounds the organizations which provoke him. after the world has seen in the decades after the establishment of the state of Israel the images of the destruction of Arab armies which represent nations with vast populations led by governments who propagated to these people the annihilation of Israel, the images have changed in the last couple or three decades to images coming from a nation which fights a different war, a war against terrorists in populated areas, guerilla wars in the South Lebanon , and modern urban and asymmetric warfare in general.
a nation of a handful of million which was able to defeat outnumbering armed forces equipped with Soviet weapons and technology, made the world see images of the desert decorated with thousands of boots of fleeing Egyptian soldiers, is now a key player in counter terrorism and asymmetrical warfare, the game has changed. Israeli soldiers of the last generations no longer deal with the threat of regular Armed forces, they are dealing with the results of the campaigns of the previous veterans, now Israeli soldiers are serving in the Gaza strip, the west bank, or previously in South Lebanon. all these scenarios and territories directly linked to the results of the Arab-Israeli wars, such as territory loss by Egypt and Jordan.
