First, yes there are excellent countries. The United States is obviously one. Some few may chortle or hyperventilate when faced with that obvious fact, but remember, all is relative. Everybody wants to come here.
If we are to take every category of civilization improvement recommended by authentic liberals and authentic progressives seriously (as I assume we both do), then the United States is probably the most excellent country that has ever existed.
Anyone who would tell you otherwise you should greet with skepticism and, for bonus kindness points, pity. You're looking at bad company and can, if you have the strength and patience, try to help them if they are open to help. Often they are deriving their opinion from their mood. It can't be overlooked.
Is Israel an oasis of liberalism and progressivism? Yes, it clearly is. Remember, an oasis is a human-friendly spot surrounded by desert. Take a ruler and go to a map. What is the nearest country to Israel that is better than it in terms of progressive and liberal values? For example, if someone were gay, where is the nearest place from Israel they could feel valued and safe?
I don't really think judging rude Americans and Russians in Japan (as you mentioned) is racism. It really is, to me, a kind of dislike of rude, thoughtless people. There's nothing wrong with disliking them. It's wrong not to dislike them. I'll probably never get to visit Japan, but I would definitely try not to be rude. I'm a big fan of Japan.
Israel isn't perfect. The United States is not perfect. But they're both excellent.