I live in Israel. Most people have funny ideas what this country is like, most are wrong. The problems, the real daily problems we have in Israel are rarely reported// people find them unintresting.
Israel is roughly built around few major metropolitian centers and the further you go from the center, usually, the poorer it gets. As everyone want to live in the center greedy landlords give crazy rent//crazy apartment prices and tons of people cant efford it, still try and go bankrupt.
This is one of the main reason for the massive demonstrations that took place here, occupy wallstreet style, for lowering the living prices. This ofcourse failed miserably.
2nd problem is the religion issue, Israel is a semi-secular state, there is no seperation between the state and religion in the common sense of the word. There are rules which supposingly try to savour the jewish-culture and those always create a big debate. The othrodox jews are one of the greatest problem (those people dressed in black), they are about 10% of the people but they are more organized then any other minority, in a day they can gather by their thousands and rally for whatever they believe in. This makes them extremely powerful and lately they have been trying to force their primitive rules on the more secular population and there is alot of tension.
The Palestinian issue is mostly ignored, events when they take place, are so boring that they usually make it to the last pages of the newspaper. People just dont care and are extremely indifferent to this.