The OP is making a fair point, as is David, despite the waffling about him.
The Israeli Govt could care less what the Co-Op does, it's an irrelevant gesture.
I recall an article a few years ago that said that, historically, there are possibly 4 countries round the planet that have a squeaky clean, politically correct record that nobody else could object to (& no I don't remember which ones they are, but we - UK - certainly aren't one of them . . .all that naughty colonial empire building).
IF everyone really wants to walk this PC path, then don't buy anything from a Muslim country, or even talk to a Muslim (still treating women as 3rd-class citizens some 1900 years after being founded), and that includes checking where your petrol comes from, as if it comes from Arab oil-fields, then factor in all the human-rights abuses?
Nor would we, for example, ever buy anything German or Japanese, after their exploits in World Wars, and the same for China, after many decades of appalling human rights abuse. Let's throw in anything American, after their severe record of genocide against Native Americans, and the present policies of the idiot Chump, and that includes their film, TV and music industries, boycott the lot! Etc etc. Minefield isn't it?