Israel did use a few of the Walker Bulldogs after they captured them from Jordan during the 1956 War. Because of the embargo they used everything they could capture as well as modify and maintain what they already had. In fact, during the 1963 War, the Israelis captured two battalions worth of Soviet equipment from the Egyptains (Third Army I believe), and used them to form two new armored battalions that are stationed in the Negev desert. They were kept as a reserve in the 1973 War, but did see some action stopping the Egyptian breakout from the Suez. They still have some T-34/85, JS 3, T-62 and T-72 tanks in storage today, along with BTR 60's, BMP 1's and some BTR 152's that have been captured over the years. There are even two companies of Artillery using the BM 14-16 and BM 21 Rocket trucks captured from Syria and Iraq.
I was told by a friend of mine from Israel that they NEVER discard anything, no matter how old it is. They just heavily modify it, because they are afraid that they'll be embargoed again, and run out of stuff in the event of another major Arab attack against them, even today. Take note of the M 3 Halftracks from WWII that they still patrol with! I saw one on the news the other day while watching a story showing the Israeli Army disbanding another settlement. I was shocked to say the least!