You might want to think that the world in its infinite wisdom and humanity, got together to ban them because of their actions in Gaza. And that would have been awesome. But no.. They just did dnt qualify. They were in the same group with Italy, Estonia , and Norway. But they didn't make it.
Interesting fact. Israel is located in Asia, which is a relatively easy Confederation from which to qualify. But the Arab countries have historically refused to play them. So despite not being in Europe Israel is part of UEFA, which is by far the toughest confederation to qualify from.