I actually just got back from there last month (was my first time in Israel). Tel Aviv is an amazing city, is right on the Mediterranean coast, and has an unbelievable amount of hot women. Nightlife there is the best in the Middle East, and among the best in the world. The day we arrived in Tel Aviv was a pretty long day, since we came by road all the way from Sharm el Sheikh, Egypt (by the way, the Egyptian/Jordanian/Israeli border is a 5-hour busride from Tel Aviv, and Sharm el Sheikh is an additional 3 hour drive from the border). I liked Jerusalem a lot, too (which is only 45 minutes by bus), but Tel Aviv is the more cosmpolitan/secular city.
Do you have any stamps and/or tourist visas for any other Middle Eastern countries in your passport? If so, be prepared to be thoroughly questioned at the border. I was questioned for over an hour both ways (I have a US passport, born and raised in the US, but am Pakistani-American and have visited Pakistan in the past).
No I don't but I have to get another passport for the Arab countries I may be visiting later this year. They won't let you in to a lot of countries if you have a Israeli stamp in it.
When you're at the port of entry in Israel, ask them for a stamp on a separate sheet of paper, rather than on your passport itself. Almost everyone requests this and they'll almost always oblige (that's what we did).
It's not 100% fool proof, unless you're flying into Israel. We arrived by road from Egypt via the Taba border crossing, and although my passport doesn't directly show any evidence of me having traveled to Israel, any customs agent in the Middle East knows that a Taba, Egypt entry/exit stamp on a passport means that you were in Israel...and I would most probably be denied entry into Lebanon and Syria. If I ever visit Pakistan again, I doubt the customs agents would be quite as savvy on Middle Eastern geography...
