While I agree with most of Chomsky's conclusions, much of this, as presented here, is blindingly obvious: e.g. settlements a barrier to piece, Israel seen as a key US ally, etc. I don't think I agree that guilt over the Holocaust played much of a role in US recognition & support of Israel. After all, immediately after the war the US, along with Britain, did nothing whatever for Jewish survivors in Europe. I believe it was this blasé approach by the victorious powers that radicalized many Zionists who had previously sought accommodation with Arab Palestinians.
I also think the Nakba is one event on a much longer timeline. Jews didn't just expel Arabs. There had been fighting for years, & as the Mandate ended there were threats from the Arab side to crush the nascent Jewish state. I don't think the Yishuv had any choice but to fight. That being said, however, they did follow a policy of terrorizing villages (e.g. deliberately exaggerating the number of dead at Deir Yassin) & preventing return.
One point I find troubling is endorsing return for Palestinians ... that would leave Jews in Israel a minority sooner or later, a process, I believe, that inspire those with dual citizenship to emigrate, leaving Israel as yet another Arab country in the ME.