The massive cost overruns and performance shortfalls did result in far lower procurement than originally intended, but the program was never 'axed.' The biggest user is the US Marine Corps. The USAF has purchased some for special operations. There have been four major accidents, three in testing, all for different reasons. Considering the radical innovation involved that is not shocking. The Osprey offers big improvements in speed and range over helicopters at an astoundingly high price. The V-22 is about three times as expensive as a helicopter with the same payload.
Israeli soldier collapses, dies from heatstroke during visit to Jerusalem's Old City (Haaretz)
from the article: Israel Air Force pilots head to U.S. to test-fly new military aircraft