In 1991 I first visited Israel, I supplied a software system to a fairly high profile company, the last time I was there was this time last year.
I can only speak for my impressions, but they are first hand. ‘Jewish’ Israelis are definitely aware of non ‘Jewish’ Israelis, there is a sort of mutual dog sniffing excercize that they go through, it is a sort of ritual - but at the end of it there is acceptance and a form of courteous friendliness.
In some ways it is like the ‘look I have no weopons/bomb’ dance that one goes through when entering a restaurant - in other ways it is like entering a British pub.
There is a great deal of antagonism, well I have sniffed it, but none of it is personal, on a personal level things smell to me just fine. In fact the most hostility I have smelt was from a ‘guide’ in Jerusalem excoriating a young couple ostentatiously speaking English.
I’ve memories of taking my lass through the Souk in Jerusalem, with a sea of old men (coming from the two mosques) who barely reached my arm pits - smoking joints that they did not offer us - yet again, no problem.
I’ve noticed that ‘Jewish’ Israelis tend to envy the ‘Arab’ Israelis dislike of multi storey housing.
A long time ago, I advocated building a Wall, choose one of the two to help out, and let the other rot - there is nothing like an empirical example. Finally Sharon et al clocked that the only solution is withdrawel, attempting to police a hostile area is futile.
Demographically Israel would be daft to be swamped by ‘Palestinians’, but two states could co-exist - the locals just need to be materially well off to resent losing it.
In some ways it is like the GDR tuning in to FDR TV broadcasts.