Earlier quoted context omitted.
I'm necroposting here, but this has been stuck in my head for a week: Israel participates in Eurovision because it's a member of the EBU. Several Arab states are also members of the EBU, including neighbor states Jordan, Lebanon, and Egypt, along with Libya and Morocco (which has in fact participated). The Arab states are boycotting Eurovision because of Israel's participation. It seems pretty clear that whatever oth…
The UEFA story is roughly the same, just slightly worse and Israel did not end up there by choice or some self-perception of European-ness.
> Israel participates in Eurovision because it's a member of the EBU
No, that is not the reason, being a member of EBU is neither a necessity nor sufficient reason for entry. Morocco is the only non-European EBU member to ever participate, they did it once in 1980, came in second to last (above Finland) with Italy the only country to give them points. They have not participated since probably because of poor cultural fit.
On the flip side, Australia has participated multiple times without being an EBU member. The only reason Australia participates is because of the shared European culture.
> The Arab states are boycotting Eurovision because of Israel's participation.
The Arab states have not participated even in the years which Israel is not competing, which was the case in 1980. Turkey has participated multiple times along side Israel, even in 2011 a year after the Gaza flotilla raid.
That said the Arab states may be boycotting because of Israel’s participation, but that does not disproof the fact that Israel participates because it fancies it self as European.
> The UEFA story is roughly the same
Perhaps, but Israel applied to and were granted memberships to the UEFA based on their European cultural identity. Greenland was not given the same break and had to apply to CONCACAF (but Kazakhstan was; curiously). When South Africa was kicked out of CAF they did not ask to join UEFA or OFC, instead had to wait until they ended Apartheid and then rejoin CAF.