No, this is about labelling them 'killed in action'.
> jacquesm, you're quite a valuable asset to this community but this is a reddit-level comment.
I don't think you're the arbiter about what is and is not a valuable asset to the community, I interpret your words as 'when I agree with you you are an asset, but when we disagree your comments are reddit level' (whatever reddit level is, for all I know it could be a compliment).
I speak my mind without wondering whether you will agree with me or not, chances are that you'll find that at times I will say things you will disagree with, possibly even strongly.
Chances are also that in those cases 50% of the times you're right and I'm wrong and vv. So before calling names you might want to consider the possibility that we simply disagree, and moreover that you could be wrong.
Propaganda is when armies / governments do not report the truth because the truth is not as useful to them as fiction. Reporting these as KIA is better for the IDF, they have absolutely no problem labelling suicides for their enemies as such. If there was any truth to this not being propaganda then you'd expect the IDF to be equally circumspect when it comes to other deaths.
Making the opposition look bad ('look, 126 people killed in action') is useful to them. That's the simplest explanation. Stigma attached to the suicides is a private affair, and does not come out from aggregate data.
If they wanted to be even handed about it they could label the deaths as 'cause withheld, but non-combatant', or 'accidental'.
You will also note that the blogger exposing this has not released any private information, all he's asking for is some basic honesty in aggregate numbers.