This is what I would call a clash of cultures. It’s not unusual to see, apparently, even in religious Israeli papers.

Two comments from the Jpost explains it like this:

The removal of Clinton and a female staffer was purely an issue of modesty. It’s inappropriate for religious men and women to sit between each other. I’m sure the paper is just presenting picture which is culturally neutral and is keeping in mind the high standards of its readership. In my shul the people are very careful about their conduct. When someone of one gender walks down the hallway those of the other gender move to one side. This regardless if it’s a man or woman passing through. We are holy nation and its great to see that readers have options.

and

There are people who believe that men should not look at any photographs of women, that it is inherently objectifying to do so. It seems likely that this was the intent of deleting the secretary of state and the staffer from the picture. It reflects an editorial policy of not printing pictures of women. This is par for the course in many charedi publications. I don’t think we need to ascribe the worst intentions to this. But it was a bad decision to run the photo altered. Sometimes a chumra needs to be weighed against other factors. It’s not as though this paper needed to run the photo at all.

jpost.com

For me, better to not post the picture at all than alter it, but then again, I’m a feminist. And this:

Other hareidi papers didn’t use this picture, understanding it would be offensive to use an altered version. Not going into issue of avoiding all female pictures-very debatable. But photo chopping such a picture is unethical.