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Avi K: If you consider Eretz Yisrael to be Israel, then the Palestinians being non-citizens is similar to how Blacks were non-citizens of the USA prior to 1865, or how Jews were non-citizens of most countries until the 19th or 20th centuries. Israel requires Chareidim who wish to be part of the economy to modify their Torah observance, which is no different than what was the case for thousands of years (if only Jews would give up their religion, they could be rich like goyim). And the truth is that if most Palestinians and Afr-Asian Jews outside the big cities wanted to move into upper class housing in Tel Aviv, they wouldn’t be allowed since the lack the money – the economy is Israel’s “periphery” is very third world, still.