From foresights nanodot and the center for responsible nanotechnology it is reported that Isreal has a five year weapons program that Isreal labels a nanotechnology weapons program.
It sounds to me like the Isreali's are working on advanced robotics, MEMS and maybe NEMS.
In terms of advanced weapons being usable by the enemy, the side that makes advanced weapons usually has far better access to them than their enemy. Captured weapons are a small percentage. Plus for weapons for which there is some concern, a military version of lojack (anti-car theft) systems can be put into them. Advanced tech also allows for other security measures to be taken relatively easily.
It is not necessarily more deadly weapons that are being created. But sensors to make targeting more effective and cost reduction for more cost effective measures.
Current military choices are to use far more force to be effective or to use less force and be ineffective. Clearly it is reasonable that a weapons program would be designed to help make current forces more effective.
None of the announced programs sound that different than some of things that DARPA has in the works.
The newspapers quote the Isreali's as talking about hornet sized UAVs and robotic power gloves for soldiers.
Here is a summary of work on miniature UAVs from a few years ago
Here is the wikipedia entry for miniature UAVs
Here is the entry for micro air vehicles
Here is the wikipedia entry on artificial powered exoskeletons
Here is an entry from this site that field tests are expected for US exoskeletons in 2008