Guys,
If he have a flight with connection, but the final destination is Transatlantic,
no matter which direction, he get 2 free baggage allowance as long as he does the check-in process to include the final destination (means, doesnt pick up luggage in jfk/ewr and go to EL AL).

Continental DOES NOT CHARGE service fees for
transatlantic flights (even if you are in connection, and the actual transatlantic goes with LY). (based on knowledge from friends).

Americal Airlines will react the same (based on expirence)

You need to mention you do an international/transatlantic flights at check-in,
sometimes the service people play dumb...

So comes the question why the hell to check-in ORD-EWR, Pickup luggage and check-in again EWR-TLV?
1. With Connections, in 99% of the times EL-AL will call you to identify the luggage before it goes to the plane.
2. Even if your luggage get on-time, Its very possible it wont get on TLV on the same flight as you (Priority goes to EL-AL Baggage, Then Connections (while each connection luggage is being scanned, if no time, it will simply go the next flight after scanning)).
3. Upgrades, Seating and etc - You will need to wait at EL-AL Gate or go to EL-AL checking to do so...