Please note that there are very different situations being lumped together here.
There are Arab (or Palestinian) Israelis, who have Israeli citizenship, who did not flee Israel in 1948 (or whose parents didn’t flee). These people are Israeli citizens and have full rights under Israeli law as any citizen. I grant you that these right in law are not always rights in practice, but there’s no country on earth (certainly not the U.S.) where there is true racial equality. However, in Israel, as in the U.S., acts of discrimination are illegal. When brought to the courts, they are rectified.
There are then Palestinians, those who fled Israel in 1948, those who did NOT want Israeli citizenship, those whose leaders pledged to “push all the Jews into sea” and to wage war until all of the territory of Israel is under Arab control. These are the people who became refugees and who have not been accorded “equal rights” with Israeli citizens.
Those rights are not the same as rights accorded U.S. citizens in the U.S. For example, under Israeli law, certain rights can be suspended in national interests (like, a suspected terrorist bomber can be detained without the need for search warrants, etc.)
The U.S. does not accord “equal rights” to Cuban citizens living in Cuba, nor to Iranian citizens living in Iran. The Palestinian refugees are displaced, they are not citizens of Israel and not residents of Israel, either. (This is a fine legal point; they are mostly living on land that was occupied by Israel; if they admit to being Israeli residents, they will be acknowledging that Israel has sovereignty over the territory on which they live, and they don’t admit that.)
So, let’s please keep distinctions in place.
Israeli citizens, whether Jew or Moslem or Christian, whether Arab or whatever ethnicity, are all accorded equal rights under Israeli law. Period.
Non-citizens and non-residents, such as the Palestinians, the Iraqis, the Australians, are not within Israeli jurisdiction and therefore Israel can neither deny or accord them any rights whatsoever.
Thus, when you ask the question in comparing to the 1930s, the answer is a resounding NO. The Jews in 1930s Germany were Germany citizens, being mistreated and discriminated against by their government. The Arab Israelis today are NOT being mistreated or discriminated against by their government. The Palesinian Arabs today are NOT being mistreated or discriminated against by their government.
The Israeli government is treating the Palestinian Arabs as potential enemies and threats to Israeli peace and security, of course, but that’s a very different picture. That’s an outside “nation” (or would-be nation) whose leaders want to wage war on Israel.