Well before the issues in Pai, Israelis often seemed to have had bad reputation among Thais in tourist industry.
Refusing to pay the overseas call cost when the amount is more than they expected(phone call charges calculated by second) when they used such services in internet cafe(used to be more common sometimes ago).
I have also heard of the cases some of them have beaten up prostitutes in red light district, with the ash tray...
I hate to say something like a racist, but technically Israel is the Worst Hated Nation in the world.
Many Muslim-majority countries usually refuse their entry(not recognizing Israel, and their passport).
So they can come to Thailand, but not to its immediate neighbor(Malaysia), except for the case Special Permission is issued by their department of interior...
do muslim states reject israeli entry? - Google Search