Einstein refused the PRESIDENCY not the Prime Ministership of Israel. The Presidncy is a largely ceremonial post withut executive power.
If Einstein had any influence on Isreali policy it would have been AGAINST nuclear weapons,
I guess there is a remote possibility that a President Einstein would have helped Middle East Peace but actually I think that most of the Arab World believed in the 1950s that there was real possibility that the Israelis would "go home"