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Apples and oranges. Planting explosives in equipment is not in the same world as installing back doors. Different threats require different responses.
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It gives BDS supporters new ammunition; now that Sodastream might have a bomb in it, Teva pharmaceuticals might be poison, ...
They modified someone else’s pagers. Those were not Israeli products and probably had zero Israeli components or anything made by an Israeli manufacturer. Not the same thing.
These weren't labeled as "Israeli products". They were labeled as being made in China.

You could ban Israeli products as punishment. But in doing so you'd leave yourself more open to being blown up, not less, because the ones with bombs in them will be labeled as anybody except Israel.

The "capabilities" aren't in manufacturing, but in supply-chain hacking.

Strictly, they can't even prove that it was Israel behind it, though there isn't really any doubt. That's how good their supply-chain hacking is: as least thus far, nobody has been able to trace it back to them.