With all due respect, I disagree. Until the rules of politics can be re-written at the most fundamental level, there will always be a need for proxy States. Any nation that gets foriegn aid is being helped, and by extension, is a proxy. Even in a world full of good intentions, you're always going to be giving help to some country that you think is in the right for whatever reason.
Like it or not, proxies occur when larger nations open their wallets for smaller nations. Nobody gives aid with no strings attached. Even if a major
power wanted to avoid using its infuence, the citizens of that major power would demand action if the affected smaller power were in trouble.
They're hungry, so give them food. They are threatened, so give them guns.
As a practical matter, it is often cheaper in the long run for a major power to sponsor a smaller nation. This process does build in a certain amount
of "safety" for the major powers, which will find it harder to accidentally go to war with each other. Is this wrong? Fundamentally, you'll say
"yes." Politics is not moral, and its not ethical. History documents the ultimate fate of most small nations. They are to be proxies, or...they
are to be pariahs.
I've kept this generic to avoid another argument about Israel, which is clearly the central target of your thesis. I would point out that if none of
those proxy States were getting help from outside interests...they'd still be trying to kill each other.