This is very much not the case in the West Bank where expropriation and colonisation of Palestinian land by Israeli settlers continue, under the watchful eye of the Israeli army.
The Israeli state has done it's best to ensure that there can be no viable Palestinian state, condemning millions of Palestinians to eternal military occupation and second class status in their own homeland.
Any claim that Israel is acting in good faith towards Palestinians is very much undermined by these facts.
The Likud turns a blind eye because its basically a free military. Moreover, it provides a military buffer between Israel's mainland population and much of the radicalized West Bank population.
Additional, yes there are discriminatory laws within Israel, such as https://en.wikipedia.org/wiki/Israeli_citizenship_law
And https://www.aljazeera.com/news/2023/7/27/israeli-protests-ca...