I agree. The PGM class is much more challenging than the machine learning and algorithm classes, even though (or perhaps, because) Tim and Andrew are doing such a terrific job with the videos of ML and Alg, respectively. One also notices a steep decline in the number of PGM quiz attempts in the published statistics. However, I think that some of the difficulty of the PGM class should be attributed to the rough edges in the programming assignments. We rely heavily on the forums to collaboratively decipher them (as well as some ambiguous questions on the problem sets). But then, this also shows that Coursera's platform enables positive student interaction...

I probably used every curse I know while working on the 5th PGM assignment, but I am the first to admit that I did learn a lot, and I'm sure they will fix the rough edges for the second run of the class. Moreover, the entrepreneur in me is very inspired to see fresh-from-the-oven code. Sure, I've already seen apps that were lacking some features because they were released fast, but here I have an opportunity to actually see some fresh code (since we are basically asked to "fill in the blanks" in Daphne's implementation). I admire Daphne's entrepreneurial courage to publish something even if is is not 100%.

Also note that the PGM class has many more pointers to recent research in the field [1], which I think the OP would find interesting.

Finally, I think the OP is missing a bit of the bigger picture - comparison of undergraduate studies in Israel and the US. I could probably write a long post about this one day (I've taught science undergrads in both college systems), but at least I should point out a couple of things. In Israel, there is much more focus on the major; about 95% of the classes are in the major field of studies. (One chooses her/his major before applying to college). There are (almost) no GE classes [2]. There is probably no one attending CS classes who does not major in CS (or double major). There are advantages and disadvantages of each system. But as a result, you can put more challenging content into CS classes in Israel.

Therefore, it would probably be more fair to compare a CS class from the Technion to upper-division or first-year grad class. That is, instead of comparing it to Stanford's CS161 (or any other 100-199 classes), it would be more fair for the OP to compare it to the level of CS228/CS229A (or almost any other 200-299 classes).

[1] Not all of these are plugs to Daphne's research- I even remember some pointers to Thruns' papers. (he's sort of a competitor.)

[2] Perhaps this is to allow 3 years college, and save some time we spend serving in the army.