This is kind of interesting but not surprising, jurisdictionally. Putting the politics of Israel/Palestine aside for a minute, you can see how it could open a can of worms to allow a foreign government (Israel) to be sued abroad (Netherlands). Presumably if you wanted to do that, you’d need to sue in the government’s jurisdiction (israel).
Even if you won a case like this abroad (Netherlands), they would have no mechanism for enforcement, as they can’t force a foreign state (Israel) to abide by their laws.