Highlights from the article:

"(Israel's) basic constitutional documents speak of a "Jewish democratic state" while about 20 percent of (it's) citizens are non-Jews. (Israel) have no separation of synagogue and state.

...

Earlier this summer, Israel's parliament, the Knesset, passed two troubling pieces of legislation: the first (which still awaits final ratification) exempts the state from compensating Palestinians harmed during Israel Defense Force (IDF) operations in the territories.

The second, aimed at curtailing the travel of Arab members of the Kenesset (MK), states that any Israeli who has visited an "enemy country" shall be considered a supporter of armed struggle against the Jewish state (unless proven otherwise), and will be prevented from running for parliament in the seven years following the visit."

 http://www.csmonitor.com/2008/0924/p09s03-coop.html