Most Israelis are at least 2 generations away from the Shoah, and proportionately, there are probably more Jews in the European diaspora who lost family to the Nazis, than who made aliyah. This isn't about a deep-rooted psychological trauma stemming from Hitler's murderousness, it was a plain and simple decision, by Palestinian Jews and European and US Zionists during the Mandate, that the state of Israel should be a tabula rasa - a blank slate where history could be re-written - and even though failed (by dint of the mandated removal of Palestinian Arabs from their land not being successful), the state of Israel has worked hard to "unmake" the historic presence and entitlement of Palestinian Arabs to their lands. There was, for example, a wholesale re-writing of the cartography of the territory, with Hebraicised names given to places that had borne Arab names for 10 centuries or more.
It isn't about trauma,, it's about a cynical "smash and grab" that is tolerated and even encouraged by the US because it suits their geo-strategic interests.