You can disect this argument to no end. The point is that Israel is biblically and morally correct to take any action it needs to avoid another holocaust
Yep - it is self-righteous, deluded argument like that from modern Israelis that is problem in the middle-east. The Bible gives Israel no grounds whatsoever to steal other people's land. And how does Israel's self-proclaimed morality sit with its own possession of nuclear arms?
Given Israel's history of pre-emptive attacks on neighbours I would say Iran is right to be concerned about having a deterrent against Israel's nuclear capability. There is no way that Iran could launch an nuclear attack on Israel without being immediately wiped out by US retaliation. However, the US would not wipe out Israel if Israel were to launch a nuclear strike on Iran - ergo Iran is perfectly entitled to make their own deterrent - if that indeed is what they are doing. And there is no definite proof that they are doing that - just a lot of propaganda from Israel....