Let's put it another way: the best place to be a Palestinian is as one of the 20% of Israel's citizens who're Muslim Palestinian. Being a Muslim Palestinian Israeli citizen is one of the best places to be as an Arab in the Middle East, and the Middle Eastern Arabs with the most democratic freedoms are those 20% of Israel's citizens who're Muslim Palestinians. So, when I say "fine", I'm deliberately understating the true situation. Do they face discriminatory rules? Yes. Nowhere is perfect. It is a credit to Israel's overall moral legitimacy that the Middle Eastern Arabs in perhaps the least bad situation are that 20% of their citizens.