I'm a current first year at teams, and let me tell you, from what I can tell so far, there is absolutely no problem with the current program.
I was also scared by all the hoopla being posted on these forums last year, and from what I can gather, many of the concerns were sound, but the program has instituted a lot of changes over the last few years, and especially in the past few months, thanks to the new dean of the program.
Changes like the switch from a number grade to pass/fail, the making the taking of the USMLE mandatory to progress, and the trimming and shaping of the schedule by removing unnecessary classes, as well as pending changes to the research project. And next year a USMLE prep course is going to be added.
It's true that the match last year was dismal. But I think it was only because of the kinks of a very young program. The problem wasn't with the Technion itself, because the match of the previous Touro program was actually pretty good. Most of the professors are great (although I will admit that some are tough to understand), the material is very similar to that of some of my peers in the US, and the facilities are great too.
But still, it would be interesting to see how last years 4th years do on this coming match now that they've taken the boards. I suppose that will be the true test. In the meantime, no harm in applying.