It's apples and oranges to compare an externally-imposed nickname like "The Great Satan" with an ethnic designation that was the group's primary identity within the lifetimes of still-living people. There were no Israelis during the colonization of Palestine, recall. There
were "the Jews", however, which is when the term entered the region's popular lexicon.
FWIW though, if there was some other group called "The Great Satan" that wasn't the US, and you were a journalist reporting on what someone had said about the US while terming then "The Great Satan", yes, you would still want to clarify that, I think?
>Arabic speakers have plenty of options for referring to Israeli forces other than "Yahud".
Don't Israelis also refer to themselves as "the Jews", though? As in, "eternal homeland of The Jews", "Netanyahu is the leader of the Jewish people", etc.? And wasn't that what most Palestinians, including Jewish ones, called the Jewish colonial population of Palestine prior to Israel's formation in 1948?
>it's not the role of a translator to come up with a fundamentally different statement that they might have meant to say.
But it isn't fundamentally different, when understood in the likely intended context. Jihad just means "fighting for a noble cause", and "the Jews" to anyone in the region clearly refers to Israelis, so there's no change in meaning, just the opposite - the chance of a drastic misunderstanding is reduced by the translation.