I imagine there is discrimination in Israel as there is everywhere. Among different ethnic Jews too.
The criticism of Israel that is untrue involves State sanctioned discrimination, and that is to what the author refers.
I was in Israel at the height off the terrorism in recent years and on one trip I noticed that the part of street signs that are in Arabic in some neighborhoods had been defaced. On a trip about ten months later, I was surprised to see that the signs had been repaired. Everything seemed to be falling apart but they repaired where Arabic was defaced in Jewish, these were Jewish, neighborhoods.
Moslems can serve, they are just not drafted. Bedouins often serve.
Israel seems to be a subject that interests you. May I suggest you visit there. Good, bad or indifferent, nothing will give you a better sense.
Excellent suggestion. I intend to.