Living here in Ottawa I've seen my share of the stupidity of Diplo. immunity. We have had people run over by drunk diplomats with nothing happen to then etc... I personally feel that they should have immunity if the crime and punishment is beyond the standards of your home country.
It's illegal what these kids did if they were in Canada and Isreal is not about to hang them for it..therefore they should be tried there...
I say that since i can't imagine too many wanting to work the embassy in Saudi Arabia if there kids could lose their hands if the stole something....punishment is greater than we would expect here so immunity should be granted in that case..