This fellow does not seem to be Mossad material, nor would his actions fit Mossad. To tour Egypt and make observations, Israel has enough personnel in Egypt to do, even some with diplomatic immunity. And a Mossad agent will not get involved in demonstrations and incitement, certainly when he looks European and not Egyptian. Also, lying in the past in Tel-Aviv about his religion (Islam), then enter as a newsman with the same name is unnecessary with potential troubles in the future. Perhaps Grapel the Schlemiel was seeking some thrills. I hope he is released by the end of August so he can resume his law studies in the US without losing an academic year.
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Libya: Unity government proposed for new peace effort (AP)
from the article: Egypt extends detention of alleged Israeli spy Ilan Grapel