Your statement 'Israel may not be an apartheid regime but it is institutionally racist' squares with the article you quoted. Note, however, it also states: 'By law, Arab citizens are entitled to a gradually increasing number of state employment opportunities. Last year, the government approved a measure mandating that 8 percent of all civil service jobs be manned by Arabs in 2010. The target for 2012 is 12 percent.' Inherently democratic societies recognise the fundamental injustice of racism, and attempts to address at least its institutional aspects through such measures. In this respect, Israel is no different from the US, Australia, NZ, or a host of other democracies in working to erase such a blot on their societies. Let us both hope the enforcement of this particular measure is equal to the task.
Palestinian man suffers light wounds from rocks thrown by Jewish men in Jerusalem (Haaretz)
from the article: Universities across the globe mark Israeli Apartheid Week