I doubt whether it would be illegal in either country. However it would almost certainly be unacceptable in the UK but I can't imagine it causing a problem here.
I never suggested the poster was illegal under Israeli law and I'm quite sure that Israeli women wear bikinis at the beach too which makes the whole thing all the more ridiculous. Don't they have lingerie adverts in Israel? Why don't the Orthodox Rabbis cause those to be effectively banned? What's legal or not is not all that relevant if a minority pressure group can have this kind of impact. I'm quite sure the vast majority of Israelis think the (effective) banning of the ad is as absurd as I do.
Steve, I just wrote a provocative thread title about an issue that irritated me 
Michael.