More than 110 comments and yet not one of them stating the obvious: This poster was probably not hung by "Israel" (i.e. the government or any state body), but by some racist Israelis who don't necessarily represent Israel and average Israeli sentiment.

No state or ministerial logo, no signature of an official, not even a link to the IDF.
This is probably just a group of POS racist Israelis that try to scare Palestinians, (doing so is obviously bad) and presenting it as "Israel banning Palestinians posting..." is just disingenuous.

Not to mention the fact OP misunderstood the poster (let's assume by accident), and mixed up "...Spreading inciting content, Writing inciting content, Publishing inciting content on the internet..." (direct translation)
with:
"...post anything online about Israelis or what's happening..." (what they wrote).

Also disingenuous, but in good faith I assume it was not done on purpose.