Michelle is right, they have the flour at 4 Chef on Carlibach street in Tel Aviv. They also have pizza flour, and a bunch of other cool things, with which to experiment.
Daniel, some people just like to make pasta because it can be fun and interesting to do it yourself. It is a lot of work without a machine (and even with a machine) but it tastes amazing, especially if you use really good cheeses to make your own ravioli. Also, never underestimate a fresh pasta party, which can be quite fun if there are a number of enthusiastic participants. For the new initiates it is always exciting to see how such simple ingredients can turn into the basic food that some of us spend big bucks on at fancy restaurants.
That being said, there is great fresh pasta for sale at Il Pastaio on Even (Ibn) Gvirol St.... I would still suggest making your own sauces though, if you want something interesting. And there is a pretty good variety of Italian dried pastas in Tiv Ta'm stores these days, so you're not even stuck with improved Ossem.