Israel is a Western project.

In terms of who the propaganda is meant for and works on, it's really an internal-facing apparatus handing down false or misleading information and narratives (and censoring true or clarifying information and narratives). The peddlers are ruling class interests that usually span Israel and Western countries, not existing in just one. Large corporations, the military, your local cops, PR firms, think tanks, lobbyists, etc etc.

While Israelis have a pretty fucked up culture and I'm not letting them off the hook, the primary divide in terms of who is creating propaganda vs. consuming it is ruling class vs. everyone else.