I hate him but that's taking a quote out of context.
He was contrasting between the ethnic nation state and neutral ethnic state (like the US or other western countries), which is labeled "a state of all its citizens" in Hebrew. That in itself is not a problematic statement in general context as even Meretz don't support a neutral state.
But this notion of ethnic nation state is at the core of the problem, especially when that state is not ethnically homogeneous and is the product of... er... particular historical circircumstances.
Honestly, I'm fed up with certain victimhood and the inevitable double standards. I think that most of the people agree that the Jewish people is entitled to have a state. The problem, of course, is that you share the land with other people with the same or more entitlement than your people. If the foundations of the ehnic nation state are built on the negation of the other (Arabs or Palestinians in this case), there's somerhing inherently wrong in them.
As for the national aspirations, I'm Spaniard and my country has a problem with separatism in certain regions. Even though I don't support separatism, I believe that separatists are entitled to have their own aspirations and fight for them by democratic means. I consider separatists full citizens, not second class half aliens. I would oppose sending the tanks and the military occupation of rebel regions, as well as the creation of Bantustan-like ghettos for separatists deprived of citizenship, granting them a fictional autonomy or independence within their narrow borders.
Is Bibi the problem or just a symptom?
I suspect there exists a huge lack of empathy
Well in that case we should have a problem with a lot modern liberal states. Germany also have a law allowing for any of a German ethnicity to automatically become a citizen, the UK prefers migrants from the Commonwealth to the ethnic heritage and etc.
The question is to what degree is the national trait a part of the constitutional character? Israel is too much, but that doesn't mean that it is intrinsically bad
