Jews are indigenous to Israel too (backed by genetics and history). Also why are you so sure all Palestinians are indigenous to Israel? Studies have shown that there is a very good possibility that there has also been a large migration of Arabs into Palestine from the surrounding regions, as a consequence of conditions rapidly improving there.
Israel doesn’t separate people based on race and religion, there are Muslim Arab judges, cops, doctors, programmers, etc. A few years ago a bunch of programmers from Gaza got permission to work in Israel due to shortages - these guys are literally Arab, Muslim and come from enemy territory.
Arab Jews are discriminated against in Israel? You mean Mizrahi Jews which are the largest Jewish group in Israel and have the exact same rights as other people in Israel?
Or did you mean Arab Israelis who have the pleasure of living in (relative) freedom, when compared to Arabs elsewhere in the middle east (and as I stated before, also aren’t discriminated against)?
Israelis deserve peace, and Palestinians definitely deserve better - but it is their responsibility as a people to make their situation better. Israeli leadership currently sucks but the Israeli population in general has gone above and beyond in filling the void the government left. The same can be done by the Palestinians if they really wanted to, but it seems many of them really just want us dead at all costs.