Well, I've been saying that a country founded on religion will always have problems with democracy, with the even-handed treatment of its citizens. Israel has, of course, not been very bad with the treatment of its Arab minority... not a very good relationship, but good enough to avoid major social unrest.
That appears to have changed.
The idea that political parties will be rejected based on the religion/ethnic group it seems to represent is a major, major step backwards in a democracy. As Americans, we have an innate protection of this in the First Amendment ("Freedom of Assembly" and also "Freedom of Worship") and in the Fourteenth Amendment ("equal rights and immunities.")
In related news, one of my grandmothers in Israel has been forwarding me email from pro-government sources (not Haaretz; often IDF websites). I don't read them, because I already know what they say. Today's email, however, came from ArabsForIsrael.com. Do they know that they don't get to represent themselves anymore?