Gerry, a person may well come to the conclusions you say. And they would not be entirely unreasonable in doing so, since there is a clear train of logic in what you say. But it is not the most reasonable conclusion. The song taken as a whole is clearly not anti-semitic, and to try to infer that from a few words is not reasonable.

If someone is going to ignore the more reasonable interpretation in order to take offence at the less reasonable one, then while I will take note of that offence I do not feel obliged to avoid giving it.

Is LOTD anti-semitic? No
Could someone be offended by it? Possibly, but only by wilfully misinterpreting the words.
Should we alter the words to avoid giving that offence? No