Maybe its because they know that when it comes to the occupied territories then Israel hasn't got a leg to stand on, and therefore statescraft is not a viable option. So hasbara it has to be, not because its the BETTER option but because that's all Israel has at its disposal.
Palestinians report IDF airstrikes on Islamic Jihad targets in southern Gaza Strip (Haaretz)
from the article: Israel is more focused on 'hasbara' than it is on policy
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