Likewise, there's perfectly strategic reasons for the US wanting Israel to continue to exist as a country. Mainly that the US has precious few allies in the area, and even those in that short list are not exactly reliable (*cough* Pakistan *cough*). Second to that if there's one thing the Muslims hate more than Americans it's the Isrealis. Keeping their eye on Israel rather than in American interests is fairly useful. The last time Jerusalem was under Muslim control was when there was still a Caliphate, and those things are better off gone lest they turn their eye towards other places like Europe or Asia.
If Netanyahu could, he would glass Gaza and turn the West Bank into a massive concentration camp. He doesn't simply because he knows Israel exists at America's behest, not the other way around.
This argument only really works if you think history started in 2005 or something.
First, the idea that Muslim countries hate America and the US needs Israel to act as a bigger lightning rod of hate is wrong. Going back to the 1950s, Egypt, Syria, Iraq, and Libya all had friendly relations with the US. Nasser's Egypt began to hate the US and go toward the Soviet sphere because of post-JFK America unilaterally siding with Israel in Arab-Israeli conflicts. Saddam's Iraq used to be allies with the US until Israel realized that heavily armed post Iran-Iraq War Saddam might be a threat to them and needed to be taken out. Gaddafi was in the process of normalizing relations with the US after 2003 before the US up and decided to kill him because of his support for Palestinians. Syria was trying to normalize relations with the US after the Lebanese Civil War until the US implemented Operation Timber Sycamore for the sake of Israel's land annexation aspirations. Notice a pattern? The US wouldn't need Israel as an ally to go against these Arab countries if the US didn't become enemies with these countries for Israel's sake in the first place.
Second, the idea that the US has few allies in the middle east and needs Israel's support doesn't square away. The US is allies with the governments of Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE, Oman, Lebanon, Jordan, Egypt, and Turkey. The US controls the government they installed in Iraq and the Hadi government in Yemen. The only state actors the US is enemies with are Syria and Iran. In terms of usefulness, most of these allies provide oil and natural gas, some provide access to strategic waterways, and some provide military assistance when the US performs operations in the region. Israel's only real possible contribution is military, but Israel has never joined a US military coalition in the region. Instead, the US fights wars for Israel's benefit without Israeli assistance.
Third, Israel is a huge liability. On top of the fact that Israel jeopardizes US relations with other countries in the region, Israel also compromises the US's national security as well. For example, as shown
here,
here, and
here, Israel has repeatedly sold US military secrets to the Chinese, and is arguably the reason the Chinese military has been able to make such leaps and bounds over the past few decades, and is now the US's premiere rival. Great ally to have, right? Throw in incidents like Operation Susannah, the USS Liberty, and suspicious Israeli activity surrounding 9/11, it could easily be argued that Israel actively threatens the US's safety for the sake of furthering Israel's own agenda.
TL;DR: The US-Israel relationship is completely one-sided to the point of being parasitic.