You've got that backwards.

Israel specifically doesn't trust its own "settlers" with guns and they can't well say everybody else can have guns.

The kind of people who take over neighborhoods in Palestine to rhymes-with-screw Arabs out of their lands are the same who would gun down innocents in cold blood and make Israel look bad.

Right now Israel are in payback mode and can get away will killing Arabs so they arm the settlers, but when their PR cachet is depleted they'll take the guns back.