Increased military cooperation is a wrong signal at a time when Israel stalls any peace progress. Thousands of Pals are kept in custody, the Gaza siege for which there is no legal or moral ground is kept. Israel acts in contradiction with dozens of UN resolutions, Israel may accept a temporary freeze of settlements but not the principle of a permanent one, water is stolen, Jerusalem and Right of Return are excluded from the beginning, etc. Under theese circumstances, when the Israeli position excludeds any peace, such increased cooperation (as if everything is normal) would send a totally wrong signal.
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from the article: U.S. may allow Israeli upgrades to F-35 fighter jet