I found this on the San Francisco Israeli consulate site, from what I understand you should be able to get the regular passport if you visit Israel after the 10 years you will be entitled to a passport. I have been to Israel at least 3 times every year for the last few years. I guess the Chicago consulate never updated me.
What is a laissez passer / travel document and to whom are they issued?
A laissez passer / travel document is issued in place of a passport for Israeli citizens in exceptional circumstances. Laissez passer / travel documents are ineligible for the visa exemptions that apply to Israeli passports. In other words, Israeli laissez passer / travel document holders are required to obtain a visa before visiting any country besides Israel. Israel is the only country that laissez passer / travel document holders can enter/exit without a visa. A laissez passer / travel document is normally valid for two years, and may be extended up to five years since the date it was first issued.
Circumstances in which a laissez passer / travel document may be issued include:
A. Israeli citizens who have stayed more than ten years abroad (once you visit Israel you will be entitled to a passport).
B. Naturalized Israeli citizens who do not demonstrate intent to settle in Israel.
C. Israeli citizens who have lost or destroyed two or more passports in a period of ten years
