The discrimination occurs mostly in both Haredim counterparts but in mainstream Israeli society, it's becoming a melting pot through years. I feel sick when the Ashkenazic haredim said they wont follow any rule by High Court of Justice that is against the Torah - that is to stop being discriminatory. I may be not a Yeshiva student but as far as Im concerned with my religion, there is no a single verse that advocates to segregate between Jews. It's the haredim are sick people themselves. Even among the Ashkenazi haredi groups they have prejudice to one another, like the Chabad and the Satmar.
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Some 100 protesting in Jerusalem against new civics curriculum (Haaretz)
from the article: Ashkenazi parent: Sephardi girls have a bad influence on our girls