whether the security rules can be abused to frustrate legitimate trade with the "Palestine regions".
Well, yes; laptops are routinely taken away for examination "for security purposes" and if you won't hand over your password(s) you don't get it back. After a client in Europe was contacted cold by an Israeli company shortly after such an examination we took to deleting all data from laptops apart from a text file on the desktop saying "Dear Security Person, there's nothing on this laptop's hard disc for you to steal. Please return it in good condition". Most business travellers to and from Israel take similar precautions, or would if they have any sense.
If you are trading with the Occupied Territories and Gaza it often seems that your travel via Tel Aviv is made as difficult as possible.