The M1 has an engine in the back just as the Merkava has an engine in the front. The Merkava will always be fighting a protection deficit to protect the rear and its why the US Army is OK with the M1 as is.
Bottom line the Merkava was designed for tank on tank and is probably the best configuration to date for that. The M1, Leo 2 and Chally (by chance) are better suited to warfare where attacks can come fom any direction.
Ohh Weas... ahh I mean Wooki...
The difference is:
Merkava: frontal protection: thick armour + power pack, rear protection: medium armour
M1, Leo 2, CR2: frontal protection: thick armour, rear protection: thin armour + power pack
Against major threats (ATGM, 105-125mm KE) the M1, Leo 2 and CR2 have better rear protection for the crew but at the cost of higher vulnerability of the powerpack to minor threats. This is why so many M1s have been knocked out in Iraq - because their power packs have been disabled by RPG-7s. You can't knock out a Merkava front mounted powerpack with an RPG-7. You also can't penetrate the rear of a Merkava with an RPG-7.
Since the rear arc is not a major threat zone for major, ie conventional threats (ATGM, 105-125mm KE) which tank has a protection deficit? The Merkava also has other features positioned at the rear of the tank to absorb penetration effects before it reaches the crew. In the case of Mk3, Mk4 this includes most of the fuel and the ammunition which is stored in fire-blast proof containers that make for a very effective extra layer of resistance.
The frontline standard Mk2 and Mk3 and the Mk4 also have far higher side armour on their hulls and turrets than the M1, Leo 2 and CR2. Far higher.