Israel has many laws dictating where you can live and between which areas you can travel, and they depend on its complicated notion of citizenship and nationality. You have far fewer restrictions as a "Jewish nationality, Israeli citizen" than as "any other kind of nationality, Israeli citizen". This is the meaningful difference people are referring to when they say that "Israel is an ethnostate" or talk about "apartheid", because in many instances, in practice you can only do certain basic things like live with your partner if you are a "Jewish nationality, Israeli citizen".
Just to give a short (but relatively surface-level) proof that this distinction is real and meaningful in Israeli politics, you can read the most recent former PM's statements in the following link (and I would encourage reading a broad political spectrum of commentary on the various citizenship and nationality laws, in particular those passed in the last few decades, e.g., Nation-State Law): https://www.jpost.com/Israel-News/Benjamin-Netanyahu/Netanya...
Just to give a short (but relatively surface-level) proof that this distinction is real and meaningful in Israeli politics, you can read the most recent former PM's statements in the following link (and I would encourage reading a broad political spectrum of commentary on the various citizenship and nationality laws, in particular those passed in the last few decades, e.g., Nation-State Law): https://www.jpost.com/Israel-News/Benjamin-Netanyahu/Netanya...