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!
Report: Car bomb kills 10 in Syrian port city (AP)
from the article: 'Actors' boycott on settlement Cultural Center will tear Israel apart'