That phrase is the unmistakable signature of someone who is inching towards anti-semitism. What other group of people is held to such high standards? None, that's for sure. What are these supposed imperfections that infect the Jewish state; how could the Jews of the middle east cure their affliction? They can't because they aren't sick.
Moreover, the Jewish state is hailed as "the only democracy in the middle east that's tolerant of gays and women". What a low bar to meet. The truth is that the too tolerant Jews are more tolerant than the rest of the world. From the perspective of the Left, they surpass every other country on the face of the earth. The entire qualification that they are the only mideast democracy, or that they're good "with all their imperfections", wink, wink is nothing more than the slander that they are evil but not that evil.
Anyone who uses this phrase has already in their heart and mind conceded the premise that the Jews of the middle east don't belong there and are less than they should be.