The reaction to the recent nationalist trend in the Israeli parliament has been very negative. As a result, the initiative to make life harder for the Palestinian–Israeli citizens was canceled.
See this YNetnews update for more details.
Still, the undercurrent of total polarization between Israeli Jews and Palestinian Israeli citizens will get stronger. Unless President Obama will signal a new beginning in his speech on the 4th of June, the peace process is frozen.
Polarization will get worse.