I used to have a very similar opinion up until the far-right has hijacked the Israeli government, and thereby officially making it state policy that the Land of Israel is first and foremost jewish. That the government should first and foremost work by jewish laws and traditions. That the state policy will be that of settling all the jewish lands, and keep in mind, we're talking about the ultraorthodox religious zionist coalition here, so those lands are the ones described in the holy texts. This means settling even in territories that currently count as palestinian. This government has made expansionism state policy. This same government talks a lot about the jewish identity, promoting that. All of these policies do not scream diversity to me in any way shape or form, and they surely don't seem intended to make the lives of non jews easier. "The government will preserve the Jewish character of the state". Settlements are mentioned everywhere throughout their official policy.

Please, I beg you to go read that link. It's not even from a weird anti-Israel website. It's on the Times of Israel website. We are looking at a far-right theocratic state in the making here. Israel already had too many disturbing laws, and this will only make it worse.

With that being said, you're right, they might not try to eradicate the palestinian people, but they sure will try to make their lives hell under the current government. And by state policy, since they don't represent "the jewish character" of the state, they surely won't have a nice life there either.