The proxies are part of Iran's "forward defence" doctrine and I think they've been open about this. Unless I'm missing something, I don't see Israel creating any "greater" form of their country that gets close to Iran.

I'm not going to defend religious fanatics of any kind, especially when there are way too many on both sides that would wipe the other side if they had their way (as seen in the last 100 years of the region), but I think anyone with a very black and white view of the situation doesn't fully understand it.