I am not sure if they have nukes or not. They probably do, but the important thing for Israel seems to be that their enemies think they do. It could very well be the worlds cheapest and most elaborate nuclear weapons program to date. Myth and rumor goes a long way.
Would they have and use them, however, it would probably be the end of Israel, a big part of middle-east civilization and likely a third world war. A surviving Israel would be a world pariah after that. I don’t think they are interested in that or launching nukes in their own neighborhood, unless forced to.
I think that as long as Israel relies on power and weaponry, instead of negotiation and true peace efforts, they will have few friends. Their future is not in the hands of the existence of a few hundred nukes, but in co-existence.