Argentina cancelled its participation for a very simple and crucial reason: The event was originally to take place in Haifa as scheduled. Israel decided to move it last second to Jerusalem as a diplomatic campaign to coerce international community into recognizing Jerusalem as a defacto Israeli capital. This is controversial because UN, US, EU & rest of world do not recognize Jerusalem as Israel's capital, instead they want to push a peace plan in which the city is divided into two capitols, one for Palestinians(eastern portion) and one for Israeli's(Western portion).
So of course a soccer club doesn't want to associate itself with this sensitive political drama.