How different the discussion would be if someone said, 'I think its a terrible idea to build a black neighborhood in the middle of a white area'. Then it would be recognized as the racism that it is. Real peace will only happen when both Jew and Arab can live in the same neighborhood safely, as it was in the past, despite the occasional exception which has now changed into the 24/7 rule. If an Arab is able to buy in a Jewish area he should also be able to get permits, as the official implied. That doesn't take away from Israel being a Jewish state. The problems arise when Arabs want to live in a Jewish area but not a Jewish state.
Netanyahu: Most of Americans see eye to eye with Israel on dangers of Iran deal (Haaretz)
from the article: Jerusalem official: Areas east of fence not part of city