Well, I don't usually like to post in Israel/Palestine threads, but I think I'd like to offer my view on the mod team's policy as an Israeli, who is quite active in anti-occupation activism and other issues in Israel. Specifically, I'll mention two points in the policy:
1) I think it's wrong to not allow comparisons between Israel and Nazism. I understand why such comparisons can be problematic, and I'd rather people use less comparisons to Nazis in internet discourse in general, and there are plenty of more apt comparisons in the case of Israel, but such a blanket ban is silly. Israel is, in many regards, growing more and more fascist, and have rightly earned comparisons to Nazi Germany.
In fact, this rule is a little funny to me since recently a law was proposed (it actually might have even passed, I don't remember) in Israel to disallow comparisons to Nazis. This has lead to quite a popular idiom in the Israeli left "You mustn't compare." You basically use it to point out the thing is so clearly fascist or downright Nazi, but - "You mustn't compare."
So, I don't mean to compare the mod team to the Israeli government - but this policy is quite similar to a law by my government clearly meant to discourage critical discourse in Israel.
2) While I don't think it should be a mod-sanctioned rule, I do agree one shouldn't focus much on blaming all Israeli citizens for the actions of our government. The reason is that Israeli culture is quite complex and not very heterogeneous. Why some groups in Israel vote as they do - is something that is quite complex to explain. For example, Israel's Druze and Bedouine population mostly serve in the IDF and can be quite right wing (though that is more true in regards to Druze than to Bedouine.) In addition, most Mizrahi Jews (Arab-Jews from Muslim countries) also mostly vote right and so do most Ethiopian Jews. Honestly, I'd avoid making any generalization towards Israeli society unless you have familiarity with it. That's not to say most Israelis actually super-care about Palestinians, they sadly do not, and that can and should be criticized.