the problems in Israel arose after they formed. in several interviews in Israeli metal magazines the members professed to be openly Satanic (which does not bode well in a city home to 3 of the world's largest religions, all of which see a sort of "hell" in the afterlife). difficulties had them relocate to Amsterdam, as you stated.
their first album "As Jerusalem Burns..." is quite an interesting and adventurous listen. they, unlike more recent works of Nile, incorporate their Middle Eastern influence in their guitar work (also on later releases), and it makes their sound flow naturally, instead of sounding forced.
i also have "Sphinx" by them, and that is an accomplished work as well. however i still do prefer their first album. legitimate indeed, great even.