Of course Israel has Arabs living here, with the same rights as all other citizens although not yet with the same responsibilities. But so does Greece, the nation-state of the Greek people that has a large Albanian minority in it. And so does Lithuania that has a large Russian and Polish minorities that are Lithuanian citizens in the nation-state of the Lithuanian people. And the same you will find with every nation-state worldwide. Having minorities living in a state does not mean the state does not have a national orientation and affinity. To think it does implies lack of knowledge of the nature of the concept of a nation-state. The Palestinian Arabs want a nation-state. Do they really want it clean of all Jews.....???
First refugees travelling on Hungarian bus arrive at Austrian border (Reuters)
from the article: Report: Abbas reiterates refusal to recognize Israel as 'Jewish state'