David at Israellycool exposes the Israeli MSM's latest fabrication. He has a link to pictures from roter.net showing the "victim" throwing rocks. The clincher is a picture showing a cameraman telling the "victim" how to pose. See also Israpundit here and here.
Update: See the very bottom of the Isreallycool post. His conclusion: The incident was not staged, but neither was it a lynch.
Update: See this link from Arutz 7.