The fear of reprisal in Israel is not from the government alone, but from a fascistic society. Recall the Arab Israeli girl who was susoended from school for showing sympathy with Gazan children, then was met with a crowd of her peers chating “we don’t want Arabs in our school” on return.
You’re basically arguing that this process had nothing to do with capitalism. Like Apple isn’t capitalist, it’s just workers working. Like what is the logic here. Those workers didn’t do it to create the iPhone… they did it because the capitalist who wanted to create the iPhone was paying them. So that his privately owned firm could compete against other similar firms in the market.