The argument that without a blackout of a tiny speck of land on the Eastern shore of the Mediterranean, American firms will be unable to defeat the competition is simply wrong. The same is true for the claim that a blackout on Israel will create a niche for competitors. That niche already exists, and if Iraq, Syria, Iran, or Libya could purchase reconnaissance satellites from France or Russia, they would have done so. Sensitive national security information has always been classified, and the proposed blackout is no more of a constitutional issue than any other legitimate classified intelligence data. There is a vast middle ground between a total ban on high-resolution systems and unfettered commercial remote imaging.
Pace is correct on one point, however.
The US Congress should not impose security-based limitations on commercial satellite systems. This is the job of the Executive Branch. The recent progress in developing a practical policy that allows the commercial exploitation of space assets to the maximum extent possible, consistent with the maintenance of international stability and the vital national security interests of the US and its allies, is a good sign. This will also pave the way for Israeli firms to extend their cooperation with American industry in developing commercial space technologies.