I doubt YCombinator is a political forum. But, because of this thread, I'll at least bring some light to the topic.
First some data: Israel was unfortunately at war and it's foes were explicitly targeting civilians in Israel and Danny is said to have participated in killing (aka assassinating) the militants that targeted the civilians. In defense of Israel's foes, they've justified targeting civilians because they feel like they aren't powerful enough to defeat Israel head on and many countries including the Allies in WWII in Dresden and Hiroshima have targeted civilians.
Then the analysis: Should people in the army ever be called heroes? I don't know. Is it good that armies have defended countries? I think it's good that WWII ended with the allies winning. I'm not sure about Vietnam, although I think intentions were good. I'm not so sure the war in Libya did anything for anyone even though Europe achieved its objectives.
Personally, I think someone is a hero when they make sites load faster or when they explain the world to people.
I definitely think he's an incredible hero for standing up to the hijackers and building Akamai.