If all the Poles in a certain village locked up all the Jews in that village in a barn and waited for the Nazis to collect them does that count as an action by the narod?
No, if such a thing took place, it wouldn't count as an action by the narod, it would count as a despicable act committed by a village in Poland.
People say that the law is unclear, but perhaps it is written in such a way to allow room for some common sense and treat each case separately?
If a teenager visits Auschwitz and asks about the Polish death camp, he should have it explained to him that there is no Polish death camp. If, on the other hand, a journalist purposely writes about how Poland co-operated with Germany and set up death camps with them, that's a blatant lie and should be punished. It should depend on who said it and if they said it knowingly. The courts will then be able to decide case by case.
Personally I think the phrase 'jak nie wiadomo o co chodzi to wiadomo o co chodzi' fits perfectly here. This isn't really about Israel being upset that Poland is trying to deny the Holocaust - they know it isn't doing that. It's about money.
If Germany and Poland are both responsibly for the murder of millions of Jews, then they both have to cough up. If Poland isn't guilty, it becomes a problem. It's no coincidence to me that the USA is also getting involved and trying to stop Poland from passing this law, given how they are trying to put S.447 through themselves.
Basically Israel looked at this Polish law and panicked, believing Poland was trying to cleans themselves of any wrongdoing. This would make it harder to extract money from them in future, if Poland was just as much a victim as the Jewish people.
I'm not even going to go in to other facts that are seldom spoken of and slightly derail the 'Jews were nothing but victims' compensation narrative - such as the fact that Jews themselves also co-operated with the Nazis and turned in other Jews. Or how some Jews turned Polish people in to the Soviets. Or that big powerful Jewish organisations in the USA knew what was going on and did nothing. Who's going to compensate for that?