Under other circumstances, no they would not be much of a threat. The location of the country, the mentality of the people and the fact that, unlike Iraq and A'Stan, they are in possession of a much higher trained and equipped military force makes them a force to be worried about. Were I in Israel, I would be at least a little concerned. As of 2004 (the most recent information I have read), we had no true intelligence as to biological capabilities, and they absolutely have the most dangerous asymmetric warfare machine in the middle east. Add to that an unknown ability for enriching nuclear material and....
A war on three fronts is nearly impossible to win without overwhelming force, and in the middle east that means manpower, which we do not have to spare. So given the current situation, yes indeed, they would be significant force. Add in the unknown variables of a bio/nuclear nature and you have something to loose sleep over in the region.