Guilt is an unhealthy motivator whether you are Jew or Gentile. Fear is guilt's step-sister. Religion could deal with these issues, if anyone had real confidence in the ceremonies designed for this. In my mind, the seasons and festivals are for this purpose, the fall festivals beginning with Elul, Tashlich on Rosh HaShana through Yom Kippur and Sukkot especially so, but only with faith in Hashem, and a recognition of His work, not mere ritual observance. The ritual observances are fine, but won't obliterate guilt on their own.
Unclear is how Jews are deteriorating; relatively speaking, there are no pogroms, no governments with openly discriminatory anti-Jewish policies where Jews actually live, & no force of any merit that would murder Jews. Assuredly, the guilt is less now than when Jews were supposed to say "I'm sorry for having killed Christ."