> Reporting these as KIA is better for the IDF

This is the crux of the issue. This a weak opinion. You jump immediately to 'propaganda' as the reason that soldiers who commit suicide are labeled KIA when there are many other possibilities.

1) Do you know if there are in fact different official classifications of active-duty soldiers deaths?

2) Do you know if they're labeled KIA for benefits purposes?

3) Wouldn't this make Israel's enemies look better since it lowers the civilians to combatant death ratio?

You, without qualification, immediately assume this is a propaganda. That's the problem I have and that's why it's a weak comment. It has nothing to do with whether I agree with you or not.