I think they intend for their tactics to cause damage, but I do not think that they have set forwards reasonable evidence for their proceedings, or even been clear what they consider illegal or whether it's merely a case of them disallowing automated moderation tools.

When they said "dissemination of illegal content in the context of Hamas' terrorist attacks against Israel" I can only assume that it refers to the October 7th attack by Hamas upon Israel and not to another attack.

Of course, it could refer to a specific video posted during this time period that they consider to be disinformation, however, taking action against a singular video would be quite over-the-top which is why I believe they're referring to the overall dissemination of videos around this time.