To address the OP, with the details filled in in later posts, about Europe to TLV:
One can transfer from Starwood into the following Star Alliance members without getting ripped off (ex. SPG:CO is 2:1):
Adria: same as Lufthansa-check their website, my laptop is giving me issues
Air China: I don't read Chinese (sorry!)
ANA: Already been dealt with all over this forum
Asiana: 35,000 RT for trips up to 3,000 miles
Singapore: 35,000 RT
Thai: 40,000 RT
US Airways: Already been dealt with all over this forum.
Note 1: Air New Zealand also can take a SPG transfer and will cost 16,250 SPG (no 25% bonus, but it is available) when flying within Europe under 2,000 kilometers.
note 2: this is all assuming that TLV is in the Middle East.
The only ADDITIONAL airline that AMEX would be worth transferring in to is CO, and that has also been discussed at length in the forums.
So to sum it up, as of now, it seems that Europe to TLV on Star Alliance does not have a "better" option because its a short-haul, similar to LAN between BOS and JFK for example.