If you are in Tel Aviv you can avoid the real world. In Jerusalem -both sides of the city- you see plenty of Arabs. If you go to the university, the hospitals, city hall, the supermarkets, the restaurants, and on the streets there are plenty of Arabs. If the center of the world is Tel Aviv you always get a warped view of reality.
Israeli PM to Palestinian President Abbas: We must fight terror together (Haaretz)
from the article: Sharon's real legacy - keeping the Arabs out of sight