Memdani is very skilled. I think him and his team could easily call escorting Netanyahu's motorcade through New York and delivering him to federal authorities an "arrest" even though the feds would let him go immediately. He would be seen doing everything he could despite it being effectively performative.
So yeah, Netanyahu won't risk the embarrassment.

There's just no good reason. Might as well legislate that girls wear pink and boys wear blue. Equally as baseless and invasive of free expression.