You raise an important point. Israel does not trust its own citizens to keep and bear arms. At an absolute minimum, every Israeli military veteran should have the right to keep guns and ammunition in his house.
It would be one thing if we’re talking about a country surrounded by peaceful neighbors. But we’re talking about a country surrounded by lunatics who want to kill every last Jew.
Yes... they should encourage gun ownership, like the Swiss. The world would be a more peaceful place if there were a firearm in every home with citizens trained on how to use them properly and safely.
Swiss veterans....and everyone else have guns and they aren’t exactly surrounded by hostiles. Israel is like firearm bans for pioneers on the Bozeman Trail during the Sioux Wars.