The Jerusalem Post has this amusing article about the lack of latkes (or levivot) in Israel in favor of sufganiyot (fried jelly doughnuts). Some of the comments are funny too.
The author quotes someone's story on how sufganiyot became popular in Israel:
"It was the Histadrut guys, you know the ones from way back... They were bothered by levivot being homemade and not something that was sold in grocery shops or kiosks, and felt that something was needed to keep workers busy - particularly during the slow months between the hagim and the time dried fruits start moving. So they began to look for an alternative, you know, something that you need oil for but also something that people - and especially kids - would spend money on. Someone real smart came up with the idea of making sufganiyot a Hanukka treat, and bingo, a star was born."
Personally, I think both are a recipe for indigestion. Instead, I'll be making some zuchinni levivot later fried in olive oil spray. Actually quite good!
Whatever you choose to eat, have a Chag Chanukah Sameach!