The Palmach Museum tells the story of the Palmach, the underground military organization of Jewish fighters, from the time of World War Two through the end of the War of Independence. Unlike traditional museums, there are no cases and displays of artifacts and documents. Rather, one is lead from room to room as the story of a specific (fictional) unit is told through 3-D visuals - lights, noise, film, etc. I know that certain people feel that it is way too commercial and kitschy. I would agree that the experience lacks the feeling of authenticity but the technique mentions to keep one's attention and be moving and powerful. It can also be scary so I recommend this only for older children.
Palmach Museum - 10 Haim Levanon Street, Tel Aviv - 03-643-6393. Because groups are guided from room to room you need a reservation to enter.