I think there's enough Mediterannean civs as it is...I'd like to see Israel and feel that failure to acknowledge it contributes to the worldwide ignorance surrounding the Middle East situation. I don't really get it--what has Israel done to be persona non grata? No one could argue they're worse than the Mongols (to even have to compare the two shows how ridiculous the situation has become). Hopefully any decision on whether or not to include Israel stems from its questionable status as a world power (in ancient times) or from the failure of the Civilization game to adequately acknowledge culturally and scientifically influential groups such as the Jews. If an ancient Israel civ had a ruler, it would be Solomon, as he is backed by archaeological evidence (David is not). Plus, it was Solomon who did the best things for Israel when it had complete sovereignty (not a long time at all). As for a modern Israel, it would almost unquestionably be David ben Gurion.
As for great heroes, they could include Bar Kochba and Saul (if ancient Israel) or Ilan Ramon and Ariel Sharon (ooh, too political) for modern. As for UUs, a lot have been thrown around the unit database, and I'm not quite sure. A modern Israel has several military UUs, I'm sure, but I think an advanced Worker would be the best, as Israel was able to transform the entire area so much in the last hundred years.
I'm not sure this would be right for Conquests though--maybe a later expansion, maybe Civ4. I'd like to see the Byzanties and Nubians as well, and there definitely needs to be more African civs.