Perhaps if Britain had agreed to had over power earlier, then the Labour Zionists wouldn't have adopted Democratic Centralism and banned all other political parties when independence was won after Britain was forced to withdraw by force in 1953, forcing all Jews to join moshavim and constructing a massive personality cult around the Labour Zionist leadership. I blame the re-election of Churchill for that, his insistence on keeping every country he could under British rule indefinitely certainly overshadowed any Zionist sympathies he may have had. This, of course, coincides with our blatant support of Commonwealth puppets like the Kingdoms of Iraq and Jordan against Israel, and of the so-called 'Palestinian Monarchy'.
A Capitalist Israel, or at least won with some semblance of a open market, would probably not need to cling to Soviet aid so badly after the disaster of Collectivisation, when the moshavim where turned into much less productive and strictly controlled kibbutzim, resulting a in a famine.
However, given the historical strength of the Labour Zionists a capitalist Israel is unlikely. Perhaps if the Chinese had more international clout, Israel could have become a second Albania and accepted Maoism?