The problem here is twofold. Jews have no interest in integrating Arabs into Israeli society and Arabs, reciprocate accordingly, always expressing their alienation. If at any march, rally or demonstration, Israeli citizens fly Palestinian flags and chant anti Israel slogans what hope is there for integration. But what would you expect from two entities that speak different languages, celebrate different holidays, live and are educated separately, have different social mores, have different life experiences (such as army service and pilgrimage to India) and really have no desire to integrate any further. There was a Arab MK in the 60s and 70s ( i forgot his name) that dreamed of a "Palisraeli"" regardless of religion. Apparently, his dream has been shattered. I, for one, do my part, i have friends and associate frequently with folks in nearby Tira, for dinner or whatever, and yet the cultural abyss between us is always there and is enormous.
Report: IDF find M-16 rifle hidden in Palestinian's car in West Bank (Haaretz)
from the article: The missing Arab issue