If we give aid to Israel so that they can then turn around and buy military products from us with that cash, how does that represent any sort of tangible return on said investment? And how is that self-sufficiency? If I were producing a good and I gave you money so you could afford to buy that good from me, under the assumption that you could not otherwise buy it or produce it yourself, that's hardly a profit for me and it surely isn't an example of self-reliance on your part.
Also, it seems to me that only a fool would continue to do the same thing over and over without examining if it works or not. While I agree that simply distancing ourselves from Israel is not going to end terrorist activities targeted toward the U.S., we also don't give ourselves a chance to find out what sort of positive impact that sort of a distancing could have for us. I simply wonder if we would see a reduction in that sort of activity aimed at us, or if we would gain some sort of added diplomatic currency with the other 15 or so countries in the Middle East if we weren't in active collusion with their sworn enemy.
While I agree that Israel is at least partially self-reliant, I think the fact that we give them so much aid each year dispels the notion that they are completely self-reliant. Otherwise, why would they need the aid? If they don't need it, then why do we give it to them and why do they accept it? I wonder what would happen to Israel if we did not give them the money to buy military materiel from us. What would happen to Israel if they had to fund the protection of their country out of their own pockets instead of accepting what amounts to charity from us.