QUOTE: "Why do you not live in Israel?" END QUOTE.
That is kind of a stupid question, and presupposes that the person asking the question completely misunderstands the very nature of what it means to be a Jew. Israel EXISTS for one reason, and one reason only, ultimately. I mean, there are many theological and practical and ethical and national and political and yada yada yada reasons why it exists, but ultimately, it exists to protect Jews from anti-Semitism. America exists to protect Americans, even if said American lives in Australia. As long as he is a citizen of the United States, he is afforded the protection of his government.
The only difference between Israel and any other State is that with Israel, every Jew is automatically considered a citizen of the State. I am afforded the protection of two nations by definition. One, I am afforded American protection by virtue of my birth and provenance. Two, I am afforded Israeli protection, should I choose to exercise it by going there, by virtue of my ethnoreligious status. To a limited degree, if I am mistreated in a country, I can theoretically request help from Israel without being there, although in practice this would be very limited help indeed, unless said help were with outright emigration TO Israel itself.
To a limited degree, this is mirrored by both Chinas, each government (in Beijing and in Taipei) having Ministries for Overseas Chinese Affairs. In theory, these Ministries are designed to protect the rights of any Chinese anywhere, although they are most effective in Asia. Obviously, a Chinese only uses one of them. It depends on the nation which he recognises, be it the People's Republic of China or the Republic of China.
The whole reason this Nationality Law has come up is BECAUSE the average Gentile has failed to comprehend that Jews ARE a nationality. For some stupid reason, we have been misdefined as a race (which is absurd, as Jews span the racial spectrum, from lightest white to darkest black and everything in between), strictly as a religion (which is also asinine, since the Religion of Judaism is simply the prevailing Religion of the Jewish People), or something other than what we truly are, which is a growing civilisation. Jews are a civilisation, of which Judaism is the strongest aspect. Any civililsation has a religion, its own folkways, its own languages, its own art, foods, etc.
Being Jewish is to be part of a civilisation, just as being Irish is. And just as being Irish is a nationality, so is being Jewish. The fact that most Irish are Catholic, and many other nationalities are Catholic, whereas Judaism is practiced only by the Jewish nationality, is an incident of history that is interesting, but not relevant to us being a nationality.
So, there you are. The fact is that there are 15 million Jews in the world, and 5 and a half million of them live in Israel. An equal number of them live in New York. The rest live in the United States, Russia, and various other parts of the world. Unless Israel gets A LOT bigger, it would be hard to fit 15 million people in it, even if they claimed Greater Israel, which they should, in my opinion (all of Israel, the West Bank, the Gaza Strip, Jerusalem, and the Golan Heights). With 5 and a half million JEWS living in Israel proper (meaning within the borders of 1967), and 8 and a half million PEOPLE total, you can see that a sizable population of Israel is not even Jewish. About 85% is Jewish, the remainder being Arab, mostly Muslim, with some Christian and some Druze.
This does not begin to discuss the population of the West Bank and the Gaza Strip, although I think it does include all of Jerusalem and the Golan Heights. But the West Bank and the Gaza Strip are about 98% Arab Muslim. Now, where do you intend to put 15 million Jews, UNLESS you are prepared to deport every single Arab from Greater Israel with the exception of the Druze and possibly the Christians? Even after you do that, it might be a little hard to put EVERY single one of us there, although it might be possible. I would be willing to do that, but how many people would? Would the so-called "International Community" agree to remove all the Arab Muslims? That is the common sense answer. But most of the UN has its head in its collective ass, let's face it.
So, until you can get the UN to remove its head from its collective ass, I suggest you come up with a better solution, or cease to be critical.