And he's always going to say yes unless it's going to some truly extravagant abuser (e.g. North Korea), or to a customer that would cause diplomatic problems with the US (e.g. China... maybe).
The state absolutely has the power to turn this into an instrument of foreign policy; it has chosen not to do so, in order to use it as an instrument of military-industrial policy.
(To be clear - the Israeli state is absolutely the actor to put pressure on if you want this kind of thing to stop, and indeed bears moral responsibility. But the actions of these companies are not so closely tied to Israeli state interests as to make them immune to lawsuits abroad, or even in Israel if they violate Israeli law.)