I think we may just have a different idea of what counts as incitement. I’m an American and I can tell you that openly expressing support for Al Qaeda would have made you very, very unpopular here, but it would not be illegal. There are cases where I think the American version of free speech goes too far (in that it protects things like dangerous misinformation and foreign propaganda), but I don’t think this is one of those cases. The social consequences of supporting terrorists are already harsh enough to keep those views mostly suppressed. People can, of course, find like-minded people and express their opinions in private without fear, but even then, if the conversation goes beyond expressing opinions and moves on to making plans to commit a crime, that’s considered a conspiracy, which is illegal. We have counter-terrorism units that actively try to infiltrate extremist groups specifically so they can shut down conspiracies.

I don’t think Israel (or any country) should allow speech that directly puts anyone in danger, but given the right-wing nature of Israel’s government and the tendency of right-wing governments in general to suppress speech they disapprove of, I strongly suspect that any new law will inevitably be used to suppress legitimate criticism of the government.