That's possible, but many of them may be no more than a couple of vats in someone's back yard. Grape supply is very limited and there are still serious issues with how they're handled on the way to the winery. I saw many new vines being planted, but overall I would imagine that very few of those 120 currently produce anything worthwhile. Again, other members may know better, but apart from the odd success by this Rosenbaum guy and maybe Flumm (sp?), I'd imagine that the well established Golan Heights/Yarden, Tishbi and Castel are still the most reliable.
The proprietor of Taboon was waxing poetic about Israeli wines and he told me that there are currently a lot of Israeli wineries (I don't remember the exact number but it was surprisingly high- something like 120?).
One note for bloviatrix - I'm not sure Andre mentioned on eG that at least in some cases, wineries producing kosher wines cook the wine that's meant for export for some religious reason that I'd rather not understand. As a result, it's possible that the reviews you read based on Israeli products will have little to do with what you get here. Some wineries still cook the wine for the local market as well - if you want to teach someone how to identify cooked wine, seek them out