@Red: Arabs aren’t treated as second rate citizens, they occupy positions in the army, the Supreme Court and governments. They are free to worship within the state of Israel, free to travel and buy and sell property, they can vote.
If you’re talking about the Arabs in the Gaza Strip, those could easily join Israel if they gave up eradication of the equally indigenous Jews as their primary goals. They are there occupying land without a legitimate democratic government in place. If they wanted peace, why don’t they want to join Israel? Why don’t they allow Jews into the area? Once they moderate, they can also vote in Israeli elections and get represented in a legitimate democratic government.
To say the Jews have no right to a sovereign state and that they should just put up with terrorists because they have a better army is just plain anti-semitism, as is evidenced in the quote of infamous anti-semite and holocaust denier Noam Chomsky. Imbalance of power does not mean that the losing side is oppressed, if someone enters your home with a knife and you shoot them with a gun does not make it an illegitimate defense.
Even Egypt has built a wall to Gaza as they don’t want those people in their country, and they’re Muslim themselves. If the modern day “Palestinians” want to be ruled according to Islamic rule, they can move back to their ancestors land in Jordan and Iran.