You know as a far-lefty (even in non-Israel measurements) I must say this prediction are retro-70s. that was exactly what Shelly Camp and so raved in the 70s and that public debated escalated in the 80s. But honestly I fail to see how it matters to the majority of Israelis, the one from Likud rightwards don't give a toss on democracy, and the ones from Labour to Likud are perfectly fine with a strong ethnic quasi-democracy, heck even most of Meretz argue for a Palestinian state on the sake of demographics.
But to make you feel better we weren't the finest of democracies even before 67