I agree with the sentiment. Israel should not be permitted to be part of the Olympics, their athletes should only be allowed to compete under the neutral flag, like the ~~Russian and~~ Belarussian athletes. Or, alternatively, if the IOC decides to go "no politics at the Olympics", ~~Russia and~~ Belarus should be permitted to compete again.
But going the extra mile to throw in a cartoonish evil smile and adding a random "USA" emblem? That's kind of cringe. It's detrimental to the message it's trying to convey, unless I misunderstood the message, in which case it's just dumb.
Edit: forgot that Russia also got banned for a doping scandal. That's separate from the war, of course.
I do like the concept of a "politics-free" sporting event, but then those events need to actually be free of politics. That makes things like partially unrecognised countries (Palestine, Taiwan, South Ossetia, Sealand) very difficult, though, so you'd end up with tons of micronations and disputed areas in the line-up, which immediately becomes politics again.
However, I don't think the IOC is as neutral as they claim. Belarus being excluded for "invading during the Olympic ceasefire" or whatever they claimed was just a political move.
If you're trying to be free of politics, you'll have to stay free of politics every time. It's all or nothing.
In that regard, I sort of respect the IOC for disciplining athletes that refused to compete with Israeli/Russian athletes. I can't fault the athletes themselves, but at least the organisation seems to stick to its guns most of the time.
Honestly, I think I'd prefer it if there were no flags involved at all.