Segregation is enforced in all the main spheres of life: land allocation and housing, citizenship rights, education, and employment.
None of this is accidental. It was intended this way to guarantee Israel's future as a Jewish state. Legal groups have identified 57 laws that overtly discriminate between Jewish and Palestinian citizens, with a dozen more heading towards the statute books.
Less visible but just as damaging is the covert discrimination Palestinian citizens face every day when dealing with state institutions, whose administrative practices find their rationale in the entrenchment of Jewish privilege.
This week a report identified precisely this kind of institutional racism when it found that students from the country's Palestinian minority were confronted by a series of 14 obstacles not faced by their Jewish compatriots that contributed to denying them places in higher education.
The wave of popular prejudice and racist violence is no accident either. Paradoxically, it has been unleashed by the increasingly inflammatory rhetoric of rightwing politicians like Netanyahu, whose constant fear-mongering casts Palestinian citizens as disloyal; a fifth column and a demographic threat to the state's Jewishness.
So why if the state is so committed to subjugating and excluding Palestinian citizens, and Netanyahu and his ministers so determined to increase the weight of discriminatory legislation, are they decrying the racism of Superland?
To make sense of this, one has to understand how desperately Israel has sought to distinguish itself from apartheid South Africa.
Israel cultivates, as South Africa once did, what scholars term "grand apartheid." This is segregation, largely covert and often justified by security or cultural differences, to ensure that control of resources remains exclusively in the hands of the privileged community.
At the same time, Israel long shied away from what some call South Africa's model of "petty apartheid" -- the overt, symbolic, but far less significant segregation of park benches, buses and toilets.
The avoidance of petty apartheid has been the key to Israel's success in obscuring from the world's view its grand apartheid, most obviously in the occupied territories but also inside Israel itself.
This month South Africa's departing ambassador to Israel, Ismail Coovadia, warned that Israel was a "replication of apartheid." The idea that the world may soon wake up to this comparison deeply unnerves Netanyahu and the right, all the more so as they risk being identified as the party refusing to make concessions towards peace.
The threat posed by what happened at Superland is that such incidents of unofficial and improvised racism may one day unmask the much more sinister and organized campaign of "grand apartheid" that Israel's leaders have overseen for decades.
* A version of this article first appeared in The National, Abu Dhabi.