I wanted to blog about this after reading this in Be'Sheva, but Cross Currents beat me to it. Be sure to read this post on Cross Currents that presents the family's side of the story.
When this story was first reported I couldn't help but smell a rat. The media "aleyhom" and demonization were all too familiar me as I had seen these methods used against the settlers and the ultra-Orthodox many times. Read what the press wrote at the time. Also worth noting are these posts at Failed Messiah, Dov Bear, and Jewlicious. Oh, there is also a Wikipedia entry.
May the Valis family be comforted for the loss of their infant child and the trouncing of their good name.