Actually, there's a flight sim out there called
Israeli Air Force, which, presumably, has got some real conflicts in it. Of course, if you don't like flight sim's, you're stuck.
And maybe American developer's have some crazy dispostion to focus on American wars. But then my theory goes out the window when you get things like
Shogun: Total War and what not. Maybe people would consider games based on the various Israeli wars in bad taste, given the amount of controversy that surrounds them. But then, if Vietnam wasn't a controversial war, I don't know what was.
I guess, if you don't want to be an American, or part of some country allied with/fighting Americans in a modern warfare game, you're stuck. And hey, what about the Australians? How many games have us in them? Not many!