It depends on what orbit you're trying to reach. Looking at the raw speed needed doesn't tell the whole story, because now that the space race is over and most launches actually try to do something besides set a record, you can't just launch into whatever orbit is convenient.
If you're going for something highly inclined then it doesn't matter at all. Launching to the ISS from Baikonur is no more costly than launching to the ISS from Canaveral or Guiana. Launching into a high equatorial orbit, like for a comsat, is far more costly because you can't naturally achieve an inclination lower than the latitude of the launch site, so you need an expensive plane change. If you wanted to launch into a low equatorial orbit for some reason then it would be even worse, and the high-latitude launch sites would become impractical.
And actually, Israel is far from the worst case. The worst case would be something like launching into an equatorial orbit from a site at one of the poles. This would require something like 25-30% more delta-v, which because of the rocket equation means vastly more rocket for the same payload. But for a polar orbit, launching from the poles would be fine, actually very slightly better than an equatorial launch site because you wouldn't have to cancel out the speed you get from the Earth's rotation.