What is a morally bankrupt government?

Okay, so we have a bunch of these Anti-Israeli war machine protests popping up all over the country. One of the catch phrases I've heard from the local Arab/Muslim protest guy (I think from Toronto) with the megaphone say: "Israel is a morally bankrupt government!" Alright, that kinda makes sense - but then is Lebannon a morally wealthy government? What would you do if a known terrorist group started launching shoulder held missiles at your country? Say about 100 per day? Hitting random targets along the border. And let's add that they are a political party within the federal structure of the country next to yours. Oh and by the way, their prime directive includes annihilating your nation and setting up a government next door to yours with ideology that will certainly wipe you off the face of the planet. Plus, they are in bed with 2 other neighboring countries who hate your guts - like really hate your guts. Pretty confusing? What is a morally bankrupt government? Is it one that chooses to protect it's citizens? In that case, both Lebannon and Israel are quite guilty of that - since Lebannon has allowed for Hezbollah to flourish and rearm itself financially, politically, and militarily after the Israeli withdrawal back in 2000 . . . for what reason? Perhaps to protect its citizens? How does a terrorist group such as Hezbollah develop into such a military machine similar to an army without "somebody" (think Russell Peters) allowing it to happen? They have weapons that put small third world countries to shame - firepower, they have a military rank and file - structure, they have financial backing - cash money . . . no we are not talking about Nike or Microsoft, we are talking about Hezbollah. And another thing, its quite arrogant of them to call themselves "Party of God." I'm not suggesting that there is a simple solution to this, but c'mon already - what's up with the fear mongering and the fuel dumping on a critical global firestorm?