I was under the impression that Froyo includes full built-in Hebrew support for all models.
I'm looking into buying a Samsung Galaxy S, and I called up a store about it. At the store they said that if I wanted it with Hebrew support, I would have to add about $75, since Froyo includes Hebrew only for some HTC devices.
Is this true or are they trying to fleece me?
They are trying to fleece you. Do not agree to that, nor to the other tricks they employ trying to fork more money from you (the basic color is not in stock etc.)
Can't answer for Galaxy S, but it works on my LG Optimus T. One approach might be to go to the store and try the built-in browser on a web page with Hebrew. As long as that works, I suspect you'll be OK.
Perhaps they will say that for $75 you also get a Hebrew onscreen keyboard... but if so, you could probably skip that and try "Any Soft Keyboard" with the "Hebrew Language Pack", both free in the Market. Again I have not tried anything on a Galaxy S but it works on my Froyo-bearing LG.
Just had a look on my UK Froyo Galaxy S, if I go into the Locale and Text menu, I can't see any options for Hebrew in there, and looking at keyboard settings I can't see any Hebrew options for input language on the Swype or Samsung keyboards either.
Looking at first party Google apps on the Market I see IMEs for Pinyin (Chinese) and Korean, nothing for Hebrew.
However I'm using a device with a European build on it, which would explain why I see mainly European languages in the list, I don't know if other builds will have Hebrew in by default.