Sweden vs Israel: war of the words

The diplomatic row between Sweden and Israel has quickly reached ridiculous proportions, with this video being one of the most recent contributions, apparently there is no freedom of press in Sweden! (And apparently the former Israeil ambassador to Sweden has no grip on reality).

The whole story is nicely summed up in Daniel Korski's article which also has an interesting conclusion to the question I've been asking myself for the past few days: why has the Israeli government has reacted the way it has?