Given enough eyeballs, all Easter Eggs are exposed (Linus's Law). A correct explanation is like an Easter Egg. What prevents Easter Eggs from being found for a long time? You have too few kids looking for them.
The Israeli government did not and still does not allow its citizens to shop in the public sector. This means that there are very few eyes on the lookout for Easter Eggs. It stands to reason that Israel would increase its chances of finding Easter Eggs by allowing all its citizens to shop for themselves in the public sector. But there are Jews all over the world. So Israel should allow everybody and anybody to shop in its public sector.
The Israeli government did not and still does not allow its citizens to shop in the public sector
What do you mean?
This is an analysis of the Yom Kippur war (Egypt vs. Israel, 1973)-- the Israelis were interested in how Egypt managed a surprise attack, and it turned out that too many Israelis believed that the Egyptians would only attack if they had rockets which could reach deep into Israel. The Egyptians didn't have those rockets, so the Israeli government ignored evidence that the Egyptians were massing military forces on the border.
The rest of the article is analysis of the recent Israeli election, but to put it mildly, an election has much less in the way of well-defined factors than a surprise military attack, so it's much harder to say whether any explanation is correct.
I'm sure there are many examples of plausible theories keeping people from getting to the correct explanation for a long time. Any suggestions? Also, is there a standard name for this mistake?