The problem is that Israel proclaims to the world that it is a democratic state. It has never proclaimed that it is a democratic state only for its Jewish population. Should it do that then Israel would have to be considered a theocracy, not a democracy. No one considers either Saudi Arabia or Iran to be democracies and, unlike Israel, they do not proclaim themselves as such. If a large percentage of Israel's population are non-Jews, as they are, and they are not considered as equals to the Jewish population with all the same rights as Jewish population, then Israel cannot be considered to be a democratic country. I'm sorry to say that even from its inception Israel has never been a tolerant country. Maybe that has been the source of many of its problems.
from the article: U.S. State Department: Israel is not a tolerant society