This excerpt from Roger Cohen's NYTimes op-ed piece pretty much nails the dynamic in Israel. I highly recommend this piece for anyone wanting a glimpse into what's going on in the West Bank:
Still, it must be said that Israel, a state of laws within the pre-1967 lines, is not a state of law beyond them in the occupied West Bank, where Israeli dominion over millions of Palestinians, now almost a half-century old, involves routine coercion, humiliation and abuse to which most Israelis have grown increasingly oblivious.
What goes on beyond a long-forgotten Green Line tends only to impinge on Israeli consciousness when violence flares. Otherwise it is over the wall or barrier (choose the word that suits your politics) in places best not dwelled upon.
http://www.nytimes.com/2014/07/04/op...palestine.html
Having just spent three weeks there, I can tell you that Tel Aviv is a complete bubble in the midst of all this craziness. People there even joke about how much of a bubble they live in with all the great restaurants, cafes, nightclubs, beaches, etc . You could just as well be in Barcelona or some European Mediterranean city.