> If I were a conspiracy theorist, I'd say the reason is political ?

Google buy the data in from various suppliers.  For Israel, the data
is licensed from GISrael.  We have no idea what conditions they impose
on the use of their data in Google products, but we can guess that for
some reason use of the data in the API hasn't been agreed.  That might
be about prohibitive costs or paranoia, who knows.

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