I wouldn't really describe it as a "constant and tangibly real" fear. Most Israelis will never see a terror attack in their lives. I can say that I spent the 25 years of my life in Israel without seeing anything like a terror attack, or gunshots or anything.
Israel is a very safe place on the whole. You are far more likely to die here as a result of the horrifically bad drivers than of any other cause. Day-to-day, it is not "walking around on alert" as various (ex?)military members have related above.
What exists is a higher level of awareness, certainly for those who have ever been in close proximity to some… event—but also for society at large. I don't know what it's like in the UK, but I don't think there are bored underpaid security guards at the entrance to every mall with handheld metal detectors and an "open your bag, sir." this kind of casually intrusive security is simply unknown in the US outside of airports, at least until the DHS collectively lose their shit over a plot to bomb a mall using chewing gum, bleach, and a tweezers.
So yes, there is hype, particularly if your information is gleaned secondhand from the media; they only show pictures of things here when they're on fire. That doesn't conflict with my (personal, biased) experience that society here has a deeply-ingrained sense of "be on the lookout." I certainly felt it in Tel Aviv during the wave of bombings around 2000/2001 and intifada II, and I saw firsthand how America tried to come to grips with this unfamiliar sensation in New York during 9/11.
I don't want to bring politics into this discussion, but as a Palestinian American, I certainly experienced the effects of Israeli paranoia during my visit around the second Intifada. IDF checkpoint interrogations became standard practice and inconvenience and intimidation became a normality. Thankfully, things have improved since that time period, but it's certainly a bleak reminder of the consequences of security. My hope is peace can eventually find it's way through, and both the Israelis and Palestinians can continue negotiations and finally live together in a civil humane society without constant fear and intimidation, one equal to all.
I wouldn't call it "a bunch of hype," but I agree that most of us don't live in fear. I object to the word "hype", as those that have experienced terror attacks don't forget them. The fear isn't exaggerated, but the frequency is.
> I can say that I spent the 25 years of my life in Israel without seeing anything like a terror attack, or gunshots or anything.
...but how? Did you never spend significant time in Jerusalem (before they finished the separation wall)? I only spent a total of a few months in Jerusalem and saw one suicide bombing and was a few blocks from a shooting. Have you never been to the west bank? One of the two times I went to Hebron I saw soldiers shooting at...who knows? But they were shooting. If you live near the northern border or near Gaza you must have been exposed to rocket attacks at some point. The only way I can imagine you don't encounter violence over 25 years is if you live in a safe area and don't venture out much. Still, you must have friends or family who are exposed to violence. I find it incredible that you think it's just 'hype'.
It's just a bunch of hype.