The dream of Israel is a spiritual one. It's not about controlling the world,
The dream of Israel is a wonderful world, a sustainable world. The purpose of Judaism is to celebrate life. Throughout history, many have conquered, empires had risen and fallen. But the dream of Israel is one that transcends physical power, even physical land.
Seated at the center, between western and eastern civilization, between the carefree utopia of the hunter and gathering world, and the sophistication of nation states, Israel seeks to enlighten, to lead by example. Some say, that example is the spirit of freedom, fearlessness, and the spirit of wisdom and unbashing humanness.
It does not seek to control the other nations, it only seeks to be there in spirit. It does not seek to overpower, it seeks to teach nations how to find their essence, even when land is transcended. For this, it leads by example.
Israel is hated by nations, because it reminds them of their enemies, and her friends can only provide support, often under the table, because they don't want to be associated with her in front of their allies. Like a kid with divorced parents, she takes on the role of being in the middle, being in between, hated by both. Israel is the middle ground, between faith and wisdom, war and peace, religion and secularism.
The world was never meant to be ruled by one king, or one government. The world was meant to be united by one spirit. As Jewish lore tells us, that spirit is nothing and everything at the same time. There's no need to convert religions, because in the end, the only thing left is what's obvious. Nobody converts another to believe that 2+2=4, nor does Israel ever seek to convert people, gentiles or Israelis to believe in that spirit. It offers guidelines, such as the 7 simple Noahide laws, trusting that it will offer blessings, if respected. That's it. Judaism does not preach eternal damnation, although it thinks it's funny at times, how the original traditions evolved.
Israel does, however have a moshiach, and that moshiach is just a human being, a servant, not a deity. Its role in Israel is to unite her under one spirit, so she is separate, but not divided. So the dream is that one day, our world will be separate, each with its own unique identity, traditions, and customs, but united under one spirit. As the atheists say "we're just a bunch of atoms and tissues." Well, see to it that we are one day united under the spirit of all the atoms and tissues of this universe. :)