While I cannot confirm or deny that they are doing this (and it wouldn't surprise me), the problem of proselytizing Jews is one that groups like the Jehovah's Witnesses don't seem to comprehend.
It's not that one cannot proselytize in Israel, it is that the groups that do enforce a membership that generally demands that Jews abandon their culture. That is the real problem.
Jews differ considerably regarding convictions, even how they practice things religiously. And this is not merely from between groups of sects, mind you. Judaism at its core allows for and encourages a lot of personal autonomy...yes, even among the most Orthodox. There is no central Jewish doctrinal governing body, and adhering to particular beliefs in order to have membership in order to merely belong is not a real tenet of Judaism.
The current nation of Israel is definitely a response to what led up to the Shoah (Holocaust). Regardless of our religious affiliations, the Jews as a people were being destroyed, their culture, traditions, and even language. My mother tongue, Ladino, was the most widely spoken language among Jews in the 20th century...until the Holocaust. In about 6 or 7 years almost 100% of European Ladino speakers were simply erased from the planet. My language is practically extinct, as a result. Since my name sounds Spanish, you would be surprised how many people assume I am Mexican or Cuban and are surprised learn I am Israeli. Ladino went from everywhere to nowhere, and the world took no notice until it was gone.
Israel now exists to prevent things like Ladino disappearing from ever happening again. It's not just a religion thing we are trying to protect. We are not all members of Judaism. We are not all theists. Some of us are even Christian (Judeo-Christians, the real thing and not Messianic Jews, still exist)! Regardless of our religion, we still share a lot more in common.
When religions like the Jehovah's Witnesses come around they demand that we cut our hair and shave off our beards and abandon our dress. We have to stop praying with head coverings, stop chanting our prayers, reject our holy days, and in many cases stop using our languages or at least change the meaning behind our words to fit theirs.
You destroy a people by destroying it's culture. Sure, the Jewish culture has changed, even in Israel. Even religiously the fastest growing movement is now the post-denominational, post-rabbinical Judaism (which I belong to). The face of Jewry is changing, but on its own terms. It still preserves what we decide it must preserve. But religions like the Jehovah's Witnesses demand far more than doctrinal change. They demand we become one of them.
Ever see all those happy Jews dancing around wearing Jewish clothing and eating a traditional Jewish meal in those illustrations of Paradise in Watchtower publications? No, you don't. Because Jehovah's Witnesses teach that our culture, our Jewish world is to be destroyed at Armageddon, a culture not destined to survive into their long-preached version of the New World.
This is a problem. JWs see their conformity, their uniformity as a demand of adopting their "true religion." Jews see it as smacking too closely to the views of another group that once promised a new world order that painted similar pictures of white Gentiles in Western dress enjoying life in a paradise.
While wanting to ensure freedom of religion in Israel, at the same time the government of Israel and its people don't welcome the demands of their doctrine that demand conformity. Yes, our culture is based on Torah, so yes, it is Jewish. Even atheist Jews may light a menorah on Chanukah and celebrate Passover because it's about more than just religion. These things and customs and days are about us as a people.
Ask any Jehovah's Witness if a Jewish convert can still celebrate Chanukah or Passover and I promise you, that concert will not be as free as a Jewish atheist is to preserve and honor their rich cultural traditions.