He is however, most certainly Anti-Israel, and Anti-Israeli in general. He wishes the Israeli state did not exist at all. He expressed this to me numerous times in our private conversations. His view is that Israel is more trouble than it is worth, specifically to the America taxpayer. He sides with the Palestinians, and supports their calls for the abolishment of the Jewish state, and the return of Israel, all of it, to the Arabs.
It is one thing to say that Israel can take care of itself and doesn't need US aid, a whole other thing entirely to support stealing Israel from the Jews (again) and giving it to the Arabs. I'm sure some people would argue that given Ron Paul's general pacifism/isolationism that he wouldn't actively do anything to hurt Israel. I think that view ignores the very important fact that Israel is highly dependent on US re-arming in times of war. Imagine if Israel is fighting a war in the future where it's enemies (various Arab nations, Iran and/or Turkey) are fully armed with Russian and Chinese weapons and Israel is refused arms by the American President? Israel would probably be destroyed in a matter of weeks simply due to a lack of munitions.
I know Ron Paul has no chance to win in Iowa but I think people who are thinking of voting for him, even as a protest vote, ought to realize exactly what kind of future they would be voting for.