Does anyone know of a SatNav device or SatNav software for iPhone that has maps of Israel available (preferably with good coverage).
Waze is free and pretty good. It relies on the community for constructing the maps so it's not as good as Google Maps, but it has a lot of users in Israel (it's an Israeli company) so it provides excellent coverage.
For example Garmin offers a map that covers at least part of Israel.
When I went to Israel I jailbroke my iPhone and installed xGPS, which worked great. xGPS basically downloads and caches Google Maps so you can use them even if you don't have an Internet connection. It didn't give me turn-by-turn directions, however, it was great for navigating by foot in the cities.