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Thing is, that fear is taught in schools, a large part if not most of the Israeli population are too young to remember the holocaust, so this is propagation of fear on a national scale, and to what end?

Additional, yes there are discriminatory laws within Israel, such as https://en.wikipedia.org/wiki/Israeli_citizenship_law

And https://www.aljazeera.com/news/2023/7/27/israeli-protests-ca...

... and an opportunistic land-grab on a huge scale at the expense of Palestinians.

Ethnicity and nationality is not the same thing. Oppressive actions can easily be between two ethnically similar, but nationally different groups.