Yes, apartheid and racism is alive and well in Israel - despite all those, mainly the usual shrill naysayers, who claim otherwise. One such naysayer is Alan Dershowitz, famously described by Larry Wilkerson, Colin Powell's former Chief of Staff, as AIPAC's "attack dog".
ZNet reports on Palestinians, and villages, in which they live, in an "unrecognised" state:
"Israel's population today is about 7,150,000. About 5.4 million are Jews (76%) plus another 400,000 Jewish settlers in over 200 expanding settlements on occupied Palestinian land in the West Bank that includes Palestinian East Jerusalem. They're the chosen ones afforded full rights and privileges under the laws of the Jewish state for Jews alone.
Palestinian Arabs are another story. Their population is around 5.3 million (plus six million or more in the Palestinian diaspora). Around 3.9 million live in occupied Gaza and the West Bank, and another 1.4 million are Jewish citizens of Israel (20% of the population), including about 260,000 classified as internally displaced. Palestinians get no rights afforded Jews even though those inside Israel are citizens of the Jewish state, have passports and IDs, and can vote in Knesset elections for what good it does them. They're subjected to constant abuse and neglect, are confined to 2% of the land plus 1% more for agricultural use, and are treated disdainfully as nonpersons.
Arab Israeli citizens live mainly in all-Arab towns and villages in three heartlands - the Galilee in the north; what's called the "Little Triangle" in the center that runs along the Israeli side of the Green Line separating Israel from the West Bank; and the Negev desert region in the country's south. These communities aren't geographically consolidated and are surrounded by established Jewish communities, hostile to Arab neighbors, and with Israel's full military might backing them. A minority of Palestinians also live uneasily in mixed Jewish-Arab cities like Tel Aviv, Jaffa, Haifa, Acre, Jerusalem in the West Bank and others."