Israel may not exclude non-Jews but many that are not Jewish are second-class citizens.
This is the problem with a theocracy, either the non-believers are excluded or given second class status. This was at one time true under the Ottoman Empire which allowed Jews to be in their society but they were taxed for their trouble.

Jordan, today, is not a Palestinian State. Of course the British Government had control over their mandates regarding the Mid-East and Palestine but these mandates are not accepted now by the Palestinian people.

:
"So if Arabs take land by war, it is OK, but if Jews try to recover it, it is a crime??"

The problem is that Jews also take land by war. They also occupy that land by war.

There is only one solution. A one-state solution whereby Jews and Arabs will have a co-equal form of government in these disputed areas. It probably should be a socialist regime.

As we know, this is not going to happen because of the intransigence of Israel and the animosity of Palestinians.

Netanyahu represents the Likud Party view that is analogous to the Bush W. and Nixon White House views that culminate in a power move that doesn't include the needs of the people in the country.

Israelis are beginning to discover what this reactionary power move means when their economy is tanking for the unemployed and disenfranchised. in their country.

We may have to have a U.S. Spring, and Israeli Spring in addition to the Arab Spring.

In the meantime, Israel will have to become more secular, the Palestinians will have to develop more of a secular state and the underlying division based on religion will have to be removed. This has a historical precedent going back to the Jews and the Philistines (read Palestinians) and the tribal warfare of the time.