> How come when we hear about this stuff it is always Israeli companies involved? Is ethics not taught in Israeli Computer Science curricula?

Personal opinion, but I think the mandatory army service in Israel seems to teach that everything is 'defense' and Israel is always 'defending itself', no matter what, this sort of thinking then bleeds into the private sector as these guys leave the military and use the skills they learned there to establish businesses.

Having interacted with the Palestinians during their army service as 'the enemy', the victims of NSO undoubtedly fall into the same category, thus not worth loosing their sleep over.