Quite an old thread, but here's my take on it:
Israelis always bargain. This is because in Israel, every sales person tries to rip them off. It's typical of poor economies or people with history of being poor; a lot of energy and emotion goes into the bargaining process, there's little trust between the two sides and harsh conversation is expected- even insults and swearing. This is why you get to see Israeli tourists negotiating on just a few pennies. They expect it to be an essential part of being a proper consumer. Again, they take great pride in reducing the price because they expect that the bargaining is obligatory. If you don't bargain- it means you're a wimp :-)
As to the rest of the accusations- yes, we Israelis are rude and direct. We reject people who try to socialize with us- something to do with poor economies- you don't open up easily because you take the stranger as someone who will get close to you, only to ask for a loan or try to sell you something / rip you off. If you want to socialize with Israelis, first hint is not to try too hard. This is a sure turn-off.
With all the above in mind- yes we're rude and we know it. Some of us try to make up for the others, but honestly, from the inside, it's as if there are two nations out there. One nation of kind, considerate people and one nation of rude arses.