Ma'ariv Israel's newspaper with (IIRC) the largest distribution, has an English language website. This is good news. As unlike the leftist (and viciously anti-religous) Ha'ratz, Ma'ariv is pretty neutral.
I'm still checking it out, but their news is pretty factual. Their op-eds are both slightly left, and slightly right. The down points are mainly that there is not enough is on the english site yet, and their approach is from the state's point of view. Then again, that latter point may be a good thing, as there are other papers to read to get the other vantage point. Just need to read it more to get a good opinion.
While on the subject, one site i like (and used to read) is ArabicNews.com Seemed pretty nice.