When people today say 'racism,' they mean it's a nationalism they don't like. Racialism used to be a good thing, a looking-out for what was best for one group... Israel comes out of that 19th-century idea of nationalism. Many Arab states also have preferences. It's fundamentally unfair to decide that one is racism and the others aren't.
From Ian Lustick
Most Israelis have a sense, 'We just don't want to live in the Middle East anymore. We don't want it to be the Middle East. Were going to just build a wall or operate unilaterally' - not try to even use force as used to be the case to convince Arabs to accept Israel by convincing them that Israel is here to stay and then negotiating.
From Ian Lustick
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