When I first began to look into the history of Christianity about seven or eight years ago the first time I had ever heard of the Jesus didn't exist theories was from this article:
http://mama.indstate.edu/users/nizrael/jesusrefutation.html
The author's main point is that the early Christian stories were derived from a misunderstanding of Jewish history and from the garbling of information from the Talmud and that there was never an HJ.
I don't think information in the Talmud provides much support for either the non-existence or existence of an HJ. Perhaps it might be argued that the failure of the Talmud to mention a clearly identifiable HJ suggests strongly that a hypothetical HJ was not widely known of in first century Palestine?
What it does show is that the Teachings ascribed to Jesus fit perfectly into the milieu of 1st century Judaism.
There is no references to any sort of "Heavenly Messiah" in that version of Judaism, but there are Messianic pretenders who were flesh and blood. That was a requirement for a Messiah.
People who say the Jews were expecting a spiritual Messiah have not provided evidence for this belief.
There is also a possibility that the Jewish oral tradition deliberately removed or disguised insulting references to Jesus because of persecution by Christians throughout the middle ages. That's why they speculate that "Balaam" is Jesus, because the name is an insult that Christians didn't understand, but Jews knew meant an insulting reference to this guy:
http://en.wikipedia.org/wiki/Balaam
wiki said:
Though other sources describe the apparently positive blessings he delivers upon the Israelites, he is reviled as a "wicked man"[2] in the major story concerning him. Balaam refused to speak what God didn't speak and would not curse the Israelites, even though King Balak of Moab offered him money to do so. (Numbers 22–24). But Balaam's error and the source of his wickedness came from sabotaging the Israelites as they entered the Promised Land. According to Numbers 31:16 and Revelation 2:14, Balaam returned to King Balak and informed the king on how to get the Israelites to curse themselves by enticing them with prostitutes and unclean food sacrificed to idols. The Israelites fell into transgression due to these traps and God sent a deadly plague to them as a result (Numbers 31:16)...
So there is debate about just which references are about Jesus, but no one claims Jesus was a "Myth".
Another possible reason for MJ-ers and HJ-ers talking at each other at cross purposes may lie in the fact that the HJ model developed by the most up-to-date professional academic specialists of the 21st century does _not_ involve Jesus the rabbi being a celebrity in his own day at all! The fact that he is not widely known in his own day thus makes the vagueness of texts like the Talmud of no bearing in attempts to question his historicity. Their vagueness is of a piece with today's academic peer-vetted conclusion that, in his day, Jesus the rabbi is an utterly obscure rabble-rouser who ends his "journey" with an excruciating and humiliating execution.
That's the general consensus. Now, my own personal suggestion is that the Jesus "way" only "grew legs" later on for two reasons, one related to notoriety, the other to lifestyle:
1) A few of his followers were so heartbroken when he was nailed that they got all hysterical and excited when the body disappeared and some began to think that perfect strangers were Jesus in disguise, and
2) Jesus's ethical doctrine was so counter-culturally sympathetic with the vulnerable and his own life shewed such an evidently ready nature to help everyone that his horrible death made his devastated followers want to emulate him, if they could, kind of like the effect that President Kennedy's assassination had on the Civil Rights Movement, when some historians have suggested that the Civil Rights laws could never have gotten through in '64 without the memory of Kennedy as a "martyr" spurring people on.
Stone
I have also seen a good argument for censorship of the Jewish Traditions. Whether self-censorship or imposed by outsiders, I don't know.
From your source
Apparently the Talmudic authors were familiar with the NT.
What do you reckon this proves?
If the Historical accounts of disputes in Jewish Communities and Christians being expelled from Synagogues have any veracity at all, the Jews were involved from the start. I don't see how they could avoid knowledge of Jesus stories.
It proves that no Jewish Rabbi at any time denied the actual existence of Jesus. They would have been in a position to know.
We see disputes about his parentage, his teachings, his killers, but at no point does any source question his actual existence.
Ancient Judea was not such a big place that people wouldn't notice something like that. It wasn't New York or Mexico City.
http://en.wikipedia.org/wiki/Demographic_history_of_Jerusalem
First Century Jerusalem[edit]
The population of Jerusalem in the time of Josephus has been estimated to be around 80,000.[3] The total population of Pharisees, the forerunners of modern Rabbinic Judaism, was around 6,000 ("exakischilioi"), according to Jospehus.[4]
During the first Jewish-Roman war (66–73 CE) the population of Jerusalem was estimated at 600,000 persons by Roman historian Tacitus, while Josephus, estimated that there were as many as 1,100,000, who were killed in the war.[5] Josephus also noted that 97,000 were sold as slaves. After the Roman victory over the Jews, as many as 115,880 dead bodies were carried out through one gate between the months of Nisan and Tammuz.[6]
Not a small town, but not like a big modern city either...