And regarding their lack of a decent branded US credit card, similar answer. The credit card industry in America is huge, and the bar for competition was raised very high. Therefore, us-based Banks and loyalty programs need to offer very attractive sign up bonuses and benefits to stay in the credit card business. The Israel credit card system is completely different from the roots. There's barely a lucrative credit card for earnings out there that beats El Al. Israelis will open up a credit card for a mere 100 NIS shopping credit at their local grocery 😢.
(Maybe not so related, but it also works different in the way payments work. In the US, you need to make a minimum payment, and if you're late, you can pay fees and high interest. In Israel, while you can pay for actual purchases divided into monthly payments, the money gets auto-deducted from your linked bank account on the chosen day of each month. If I understand it correctly, the banks don't have the same room for profit from late fees and interest fees, and therefore can't offer very lucrative awards either.)