I actually dont get whats funny, in the US if you are a first timer and they have no idea your credit history, let alone you are just in the country as a student, they would not even give you 700 shekel limit...sorry to say, but from your above post, it looks like you were not a good customer to them at all, perhaps thats why they did not treat you like one.
I got 18K shekel on a card i use all the time. On the Amex i don't remember what i got, because it wasn't important.
Here's what gets me angry:
1. the merchant fee is HIGHER in Israel than it is in the USA
2. There isn't any competition, the owners of the MC/Visa brand issue the cards, not the banks or other issues
and, after all of this: i just called leumicard today to cash in points for united FF. After 5(!) years of at least 3000 shekel on the card every month (bills, etc.), i got...hold your breath...3000 united points. That's about 6% of what chase gave me just for opening the card.
Pathetic. Just pathetic.