This happens pretty much everywhere with every online map. Kashmir, Taiwan, Western Sahara, etc. etc. Apple doing it for one country is not particularly news. The only major-league mapping site I know that doesn't do local alterations is OpenStreetMap, and that's because OSM's attitude is "you want the map to show something else? sure, download the raw data and host your own instance".
Exactly. Couple days ago, I have entered "Palestine" into google maps. It did not highlight any territory and just showed me generic location of Middle East. On mobile it did not relocate map view at all.
AFAIK with disputed territories it was always like that - it depends what you search and from where you search. Names, borders will be different and IMO it's fine as reality is that regarding locations there's sometimes no clear answer who controls it and what name it has.
IIRC there's an island on a river in Europe where it is exchanged between countries weekly (or daily, don't remember)..