No expert here, but the concept of dual citizenship was my first thought as well.
On the contrary. Very very very few American Jews have dual citizenship.
When American Jews have dual citizenship it is mostly because, like me, they are immigrants. How many American Jews are Israeli immigrants?
If an American Jew emigrated to Israel he/she can attain Israeli citizenship. In the same way as an American Catholic who immigrated to Canada can seek Canadian citizenship. It may be easier and more automatic for the Jew in Israel, but the process is the same.
I agree. However, that is not what is at issue in the Insight article. The report addressed Americans who "lived, worked or have relatives" in Israel. I can certainly understand the issue of divided loyalty, but by your criteria it is likely that only a miniscule portion of the people involved would have been denied their clearances or had them pulled.