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I don't think that Finny falling out of the tree is the climax because it doesn't solve anything, in fact it begins the novel. The climax is when the Doctor at Devon announces that Finny is dead. This is because it starts the resolution of the book and the action starts winding down from that point on.
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Once the IDF repositions its forces as this plan dictates, the nation of Israel becomes a series of separated enclaves, and that is a military tactician's nightmare. Arafat's Palestinian paramilitary forces could attack key targets from within, forcing the IDF to fight in separated locations. Syria and Egypt would also be tempted to jump into the fray to take advantage of this unbelievable Israeli self-inflicted wound.