Jews and Israel are vague terms. Israel could reference all Jews. It could reference the religion. It could reference the ethnicity. It could reference the government, it could reference Mossad. When Jews are referenced in the context of the government of Israel, it's on topic. When someone is disparaging all living Jews by making reference to stereotypes, it's actual racism.

I'm with you on all of that. I just don't see the comment in question as being specific enough to warrant the reaction you've given it. But maybe it's a fair question to ask them. Have you asked them yet?