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In an Israeli club scene dominated by trance music, Moshe Lahav had modest ambitions for his nostalgia singalong show. But after 20 years in the business, this pudgy, scruffy guitarist is suddenly riding a wave of sentimentality among young Israelis yearning for less complicated times. From midnight to 4 a.m. at the Yellow Submarine in Jerusalem's Talpiot industrial district, Lahav sings tunes written when Israel was a brand-new state by people who, if they are still alive, are probably in bed with their teeth on the nightstand by the time Lahav takes the stage. At 2 a.m., Lahav wraps up a...