IIRC, it is never a "football decision"; it is about the areas outside the ground which, although the match is the reason for being there in the first place, is outside of the responsibility of the home team.
It is a policing decision.
Whether the rozzers "misread the room" or not is another question.
TBF to the rozzers though, it was probably a no-win situation: the "war", the hooligan proclivities of the visiting fans, the area around "the Vile", the hair-trigger default response of many Israel supporters to cry foul at any restriction..........