I wonder if people are confusing AMEX points with AA Miles.
You can cash in AMEX points for a ticket on El-Al, but you cant cash in AA Miles for El-AL
According to AA’s site you can.
Redeem AAdvantage Miles
Use AAdvantage miles to book award travel on EL AL flights with the AAdvantage participating airline awards. These awards allow travel on any combination of AAdvantage participating carriers.
There are no Travel Embargo Dates on EL AL in 2011.
To book award travel on one of our AAdvantage participating carriers, contact Reservations at 1-800-882-8880 (or your local American Airlines office). An award service charge applies to AAdvantage award reservations ticketed by our reservations office, Travel Centers or airport agents. View complete details on making award reservations.
http://www.aa.com/i18n/AAdvantage/earnMiles/travel/airlines/elAl.jsp