Maybe because Arab Israelis have this wonderful thing called Israel citizenship, which allows them to vote.

if you treat people like citizens, they act like citizens, surprise surprise

However a few hundred metres east there are another 3 million Arabs who are rules by Israel but do not have Israeli citizenship. They are locked up in cantons which are virtually open air prisons, they don';t have freedom of movement, they don't have recourse to a civil legal system, and their property can be seized at any time. That is where the hatred comes from.

I must say however that even Arab Israelis are discriminated against :
- They are not allowed to live in the 93% of the state of Israel that is controlled by the Jewish National Fund.
- they are ineligible for a share of any of the funds that flow to Israel through zionist organisations
- 400 of their villages today are not officially recognised as towns by the interior ministry, meaning they don't get electricity. There are bedouin villages in the Negev still using oil lamps.
- they are not allowed to marry anyone from the Arab world, if they want to live together in Israel. Whereas a Jewish Israeli can bring their whole family to Israel as a matter of right
- They are not allowed to build or extend houses on their own land, without a permit (which is practice impossible to obtain). Result is that there is an effective cap on their population growth
- Arabs generate 35% of the Jerusalem tax base yet receive only 8% of the government spending on services
- The party that came third in the recent Israeli elections ran on a platform of expelling arab Israelis from the country

I could go on....