I have been (and still am) out of the US for the past couple of weeks. Because of limited internet access, I haven't been checking in. I received an email to check out this thread, and see that I was asked to chime in early on in the thread. Sorry for responding so late, and maybe responding isn't such a good idea, after having skimmed through this thread.

Please don't take this as an expert opinion, but in the philatelic circles I hang around (it's a pretty small circle -- me, lots of stamps, an angry wife, and a few fat silverfish)...
Given that we know the history of the Israeli stamps in question, the stamps should be categorized as used and uncanceled.
Any stamp that is used for payment of postage or any postal fees (in some cases, stamps were also valid for fiscal use), is considered used, regardless of whether or not it gets cancelled, sharpied, run over by a truck, hoarded into my collection, or despised by iPad users.
I don't want to get into a debate about what constitutes a "mint" stamp.
I realize that we often see listings of stamps as "mint no gum" or "unused no gum". There are various reasons for that (some legitimate), but I don't want to get into the details.
However, if we know the history of the stamp (as in this case), then it should be presented as used but not cancelled. Admitted, the great majority of sellers don't bother with this distinction.
OK, please don't throw tomatoes, I prefer something softer...

By the way, I receive a lot of packages deliver by USPS, and one of my great annoyances is the large number of stamps on the packages that don't get cancelled. If I considered packages only, it runs over 33% uncancelled! I prefer my used stamps cancelled.
Oh, well...