Well, you point out the inevitable link between the state of Israel and the Holocaust. It's pretty much impossible to avoid, tho on a coldly factual level, to deny the Holocaust happened is still, as you say, a ridiculously easy to overturn argument, considering the overwhelming evidence.
Unfortunately I have to agree with you that the atrocities of the third reich are still being used as a justification for Israel's heavy handedness.
As for where Israel was reestablished, the blame is shared more than equally by the British and American governments. It's quite obvious that they very intentionally chose to exploit the situation for their own strategic interests... and were just as guilty of ignoring the rights of the Palestinians as the Zionists were. It also cannot be denied that the endless infighting that goes on in the Islamic world set the stage for Israel's creation. This is still the Achilles heel that keeps Palestinians down... there's very little real support for them in the rest of the Muslim world, outside of their usefulness as a proxy by anti-Israeli factions in Syria and Iran, for example.
It's also plain to see that by creating a state based on religious/ethnic affiliation, it couldn't have led to anything BUT ultranationalism. The largely homogenous nation-states of the last century were the breeding grounds for this very same group psychology.
However one feels about this, Israel is a fact of life now, tho. If the Arab world were to destroy it, as is the stated goal of certain elements, you can bet this would end up causing a new and potentially world-destroying war.