As for the rhetorical question in the subject line of this thread. I think the answer is that Palestinians hate Israel because the Palestinians are perhaps the most virulently and unabashedly racist society on earth. Why is it that the Israeli Arabs are not blowing themselves up in Israeli busses? If the Israelis had not decided to oppress the Palestinians and steal for them for close to 40 years do you think they would be that way? The Israeli behavior as described in the article is just business as usual. It is nothing special. This has been going on forever.
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