Likud MK Dan Meridor's comments in the Knesset today regarding the proposed loyalty oath are right on target.
"Why does every bill need the word 'Jewish' in it – to show the Arab citizens that it doesn't belong to them?" Meridor said. "Then we're all shocked when they radicalize their stance. There are people here, why escalate and make things worse all the time? The majority doesn’t need to remind the minority that it is in fact a minority all the time."
Exactly. Making citizenship conditional on an oath will do nothing to improve the status quo, and only makes the schism between Israeli-Arabs and Israeli Jews greater. Social impacts aside, this schism degrades Israeli security because social isolation pushes the moderate Israeli-Arab center towards radicalism. The better strategy is to point out common ground between the two sides in an attempt to make Israeli-Arabs identify more with their Israeli Jewish brethren, denying would-be insurgencies the minds they require to harm Israelis and Israeli security interests.
PS - While you're at it, take a look at this interview with Frank Luntz. Regardless of his political views, he makes some good points about Israel's need to humanize itself in the media and to focus on the future.