On the whole, after living here for 15 years, I find Israel a very straightlaced, uptight place. Your mileage may vary. Yes, a little bit. Again, go figure it. I have a correction on the legal situation of prostitution in Israel.
Prostitution is very much legal.
What is illegal is a second party making money off of it. Pimping is therefore illegal. Renting an apartment to a working girl is illegal because the rent is money made off of prostitution. Massage and Escort services are very much illegal but for the most part not busted. It's all tied to the Russian mob.