I've got to thinking about rather Israel is a good country to produce Porn in. It is illegal her, as well as prostitution, but it's not really enforced.
There is a great deal of russian prostitutes here who are extremely good looking, and have a very good servicve awareness. One limitation would be that most don't speak English very well.
Take a look at this Israeli escort service site for example:
http://www.066390000.co.il/user/home-eng.asp
From experience, the girls are always as good looking or more as they are in the pics.
The prices are very cheap. Hourly rates vary between 50-100$/hour at your location for the first hour, and half that for every additional hour. (And that's through an escort service, which probably keeps about 50%).
Now, to shoot a video will probably cost more, but it's still cheap.
I wouldn't operate a corporation out of here because of legal issues, but just producing and selling content might be a good idea.
One question I have is, would you buy content produced in a country where it is illegal, if you had all the neccessarry 2257 docs?