I don't know about Israel surviving, but I do know that the Jews have survived, are surviving, and will ALWAYS survive by studying Torah, and observance of G-d's mitzvos.
My sympathies have always been with Israel. It's a sad business to observe the change in attitudes. I didn't expect much from Barak, but Sharon's maneuvers were deeply disappointing. It's the first time I've doubted whether the Israelis have the will to defend themselves.
If you consider the Hebrew Bible, there were times when the majority of Jews chose the wrong path, and only a saving remnant remained faithful to G-d, to turn things around. But I didn't think I might witness such a moment in Israel.