Tel-aviv is as tolerant as any major city gets, including towards Arabs. Outside of tel-aviv things might be different, but all in all, despite what you might read in US media, Israel is not a racist country (with the huge exception of immigration laws, where it is horribly racist, or rather religousist)

Well, there's that occasionally - but over the last 10 years or so, things have been relatively quiet.

I mean, would you recommend staying out of NYC because of 9/11, or out of Boston because of the recent terror acts, or out of Oklahoma after the McVeigh bombing, or out of Colorado after the aurora theater shooting, or out of Connecticut after the school shooting, or .... (I can probably go on for ten more paragraphs with references to just the last two years)