I think you're half right - Israel is singled out due to hypocrisy - but not because they're Jewish.
The fact is - the Left can cope with African Despots slaughtering people, but it can't cope with what is apparently a "Western Democracy" doing the same. So Israel falls foul of the same exceptionalism as South Africa before it.
Underlying that is probably the realisation that if Israelis can pump sewage into the Palestinian water supply - then, then Americans could do that to Canadians, or at least Mexicans.
It makes it much harder to look back at the "Colonial era" as the Bad Old Days when we didn't "know better". The Israelis definitely know better, but they do it anyway. The logical extension being that the Victorians probably knew better too...
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