Not sure if they have to do a lot of spying. I think we give them most of the technology they ask for. We don't just sell them airplanes, we sell them the complete weapons systems that go along with the planes.
We do not give them technology. We give/sell them systems, aircraft, etc. but you would be surprised how much is invested in tamper protection. Anything sensiteve on those systems is protected by anything from self destruct to passive systems meant only to show if a box has been openned more often than recorded by the US Gov't inspectors have recorded.
Yes, they do plenty of spying. Remember they will always do what is in their interest first, just like us. Usually we have the same interests but sometimes we do not, and sometimes one party can use information gatherred from another to get something from a third. I don't think allowing Isreal to trade off our secrets to help their position with a third nation is a good thing.