People certainly have the right to dress themselves in what they consider an appropriately modest fashion. This does not, however, give them the right to enforce this on others. From what I understand, Sderot has a pretty hot climate. To tell people they must wear long sleeves in that heat is just the sort of thing that persuades other Jews to resist haredi taking over their neighborhood.
Palestinian man suffers light wounds from rocks thrown by Jewish men in Jerusalem (Haaretz)