Here is the reprinted commentary from the American Power blog.
"Then turning around, I saw this kid yacking it up for the crowd, obviously having a blast with this ugly Jew-hating sign. And what does that mean, "SASQUATCH ISRAEL"? This is a play on the "legitimacy myth" of Israel's existence. As there's of course a "Sasquatch myth," it's worth noting the implied comparison: that Israel is also an ape-like beast existing only in historical folklore. Absent legitimacy, Israel has "no right to exist." This kid's sign is but one more example of eliminationist anti-Semitism. And look at how overjoyed he is in boasting this hatred. Creepy." --Donald Douglas
Below is the "overjoyed" kid
Douglas apparently didn't notice that the sign actually had three words, all spelled correctly, rather than two words with one of them spelled incorrectly: Sasquatch Is Real. It didn't have anything at all to do with Israel.
Src:http://scienceblogs.com/dispatches/2010/12/beware_of_sasquatch_israel.php