I think lots of it has to do with how well the hasbara covers up the scandals from the wider publics perception, combined with the cultural bandwagon of considering them an ally even when their repeated actions say otherwise.
edit: also the idea that they have such good tech and its a pragmatic decision ignores the history of how and who they got it from and the intentions for it. I say this as someone who worked directly with Mellanox for example, before aquisition by Nvidia... I always thought kernel level shims for networking stacks from an Israeli company was dangerous... but the speeds!!!