I guess I react because of the way I was raised in the US.
So is it your reaction or the culture you learned from? Most likely if you grew up in Israel you would be fine with their personal space ideals. However, it is another programme isn't it? You are you in both instances yet your preferences are detached from who you are and instead tied to what you have learned. How many of our preferences are ours and how many do we fight and are possibly willing to die for that aren't?
True. My preferences are indeed separate from who I am. Interestingly enough I know many native-born Israelis who SAY they have the same 'space needs' as I do but I have observed that they are more in 'their skin' here than I am