Answer

There is room to discuss this. In principle, for a death to count as sanctification of God's Name, it requires the intention to do so for the sanctification of God's Name and your own initiative / willingness to die. Something that happens to you (like a terror attack) is not, of course, a death for the sanctification of God's Name. Still, an IDF combat soldier is someone who places himself in danger, and in that sense there is an element of initiative here. On the other hand, that initiative exists for all soldiers, including those who did not die. There is no reason to give his initiative greater value than that of others just because he ended up dying.
I assume this is not called a death for the sanctification of God's Name, but the willingness to serve as a combat soldier certainly has value, like that of any other combat soldier.
I also don't think he deserves especially enormous thanks and gratitude beyond any other soldier. He did not give himself over to die; rather, it happened to him. He deserves gratitude for the willingness to serve and take a risk, and of course sympathy for the family's grief.