I believe Michael was saying that finally, someone in the Israeli government has said that Israel is "a state of all its citizens"--which would then include the Arab citizens (which is of course not what she meant). He is using her own words against her, and it is very clever. Bravo!
U.S., allies conduct 1 air strike in Syria and 11 in Iraq against ISIS militants (Reuters)
from the article: 'Actors' boycott on settlement Cultural Center will tear Israel apart'