This fits into the attack from the British "pro-Palestinian" lobby on Peace Oil, because it isn't Arab enough, or the attack by the same people on OneVoice. Rejectionist forms of anti-Zionism - like that of Ittijah and the Islamic Movement in Palestine and of their friends globally and in the UK, like the International Solidarity Movement, the Palestine Solidarity Campaign (and, at least in the case of Peace Oil, Jews for Justice for Palestinians) clearly do not want a peaceful and just solution; they want a war to the death.
However, they do not represent the majority of Palestinian and Israeli Arabs.
As Guardian letter writer Mark Futerman put it, regarding the attack on Peace Oil, this stance is
the demented zero-sum mentality of the anti-Israel lobby. Their idiot logic would appear to be that anything which benefits Israeli citizens in any way is by definition bad for the Palestinians, even when it is actually benefiting Israelis (Jews, Arabs and Druze) and Palestinians (through Peace Oil's new blended cooking oil).
Peace Oil is an extremely worthy initiative that seeks to benefit all groups financially (through employment and training), while also funding peace and reconciliation work throughout the region. The primary argument made against Peace Oil is that it is "stealing" shelf space from Palestinian produced oils (the most commonly mentioned of which is Zaytoun). This is moronic. None of these oils had any shelf space in the first place to be stolen. They were at best available through church groups or via the internet. They were essentially failures as products, poorly distributed and marketed. What Peace Oil has done is hugely raise the profile of the olive oils of Israel and Palestine, including the olive oil produced by the Zaytoun initiative.
More: The Wall of “normalization” that inhibits Palestinian independence by Ray Hanania (highly recommended, also here) on OneVoice; the JC on Peace Oil.