In short, Fox, it is!
The willingness of many ordinary decent Israelis to say "No! No! We won't go!" seems to have become more marked as their Government has become progressively more hardline, and less willing to compromise with a Palestinian body which has become progressively (if imperfectly) more disposed to peace and reconciliation. That's hardly surprising, since Israel is in most respects a mature and liberal democracy, and most of its people are a decent, honourable bunch, with much the same instincts for fairness and human rights as you'd find anywhere.
The problem is that the hardliners, the Zionist 'Eretz Israel' fringe, and those in the new (illegal) settlements - many of whom are new immigrants from the USA - wield a disproportionate influence on Government policy. But while there is also a hardline Arab minority which include suicide bombers who are bent on the destruction of Israel, such hardline attitudes are perhaps understandable, and it would take an enormous leap of faith to see that the path to peace may be reached through compromise.
As you infer, it's all about 'lawful orders'. The position of the refuseniks is that some of the present operations are unlawful, and participating in them goes beyond what is expected under the terms and conditions of service as a reservist in the Israeli Defence Force.