Does Approval Voting really pass the "favourite betrayal criterion"? There are scenarios where if you don't vote for both Good and Ideal, bad will win, and scenarios where if you do vote for both Good and Ideal, Good will win (over Ideal) You obviously don't know which scenario you're in when you vote, so you don't know whether you should vote for both good+ideal or just ideal - both options can cause a worse result…
You are talking about a form of strategic voting — whether or not you approve Good. But it isn't favorite betrayal. In fact, it isn't betrayal at any level. All rational approval strategy (assuming a convex distribution over others' votes) is "semi-honest" in that you never approve a less-liked candidate but not a more-liked one. The only strategic choice is where to set your threshold, then honestly approve all candidates above it.
According to the Gibbard-Satterthwaite theorem, any voting method has some form of strategy, so in that sense the best you can possibly do is ensure that all strategy is semi-honest. Approval is optimal in this sense.