That really doesn’t make sense. There are plenty of excellent or at least acceptable hechsherim in Israel.
Personally I’ve relied on these:
* Edah HaChareidis
* Rav Landau – Bnei Brak
* Rav Rubin – Rechovot
* Machzikei HaDas of Belz
* Sheeris Yisroel – Bnei Brak
* Chassam Sofer – Bnei Brak
* Chug Chassam Sofer – Petach Tikva
* Agudas Yisroel – a little less but still ok for bread and the like
* Yoreh Deah (Rav Shlomo Machpoud)
* Beit Yosef (Rav Ovadia Yosef)
All of these are ok for me. (Keeping in mind I don’t eat meat in any case – I’m vegetarian.)
For most people it’s just politics. Nothing to do with actual kashrus standards.
Ashkenazim don’t use Mizrachi hechsherim, for some weird reason – and that’s not just about meat. Tell any Ashkenazi chareidi that you’re willing to rely on Rav Ovadia Yosef or Rav Shlomo Machpoud and they look at you as though you’re completely crazy. (While many Mizrachim have told me that these hechsherim are fine.)
Then, in Bnei Brak, half the city (the Litvaks) boycot Rav Landau, because he is not one of theirs. They only use Sheeris. The other half of the city boycots Sheeris, and only uses Rav Landau.
It’s all just politics and I refuse to be part of that.