I have some doubts as to whether the Israeli forces really did broadcast pornographic images to "liberate" the Palestinians. It seems to me that they were trying to demoralize the citizens by showing them shocking images. Female nudity is almost impossible to see in public or in private in a country like Palestine. It is not common.
Why would they present themselves to the Palestinians as liberators anyways? This is something that no Palestinian would ever believe and Israel knows this very well. To me, it seems like the objective was to make sure the population would be as non-violent as possible during the occupation. You do this by demoralizing them with shocking images.
Nonetheless, it is still about political control over the country, but I don't think it's related to sexual liberation.
I'm trying to get inside the head of any of the people who lived there. From the perspective of a parent this is outrageous and should be completely avoided; the children are not allowed to watch the television. I think it's safe to assume there is only one television per household so if anyone was watching porn they would get caught. I think most people would be confused as to why any of that is happening instead of thinking of the occupation.
Anyways, this is but a small portion of what his book is about. It's actually negligible.
P.S. The capital of the Palestinian Authority is the city that was mentioned, Ramallah. It's not an obscure, small village in the West Bank.