This is facially untrue: there are over two million non-Jewish Israeli nationals[1].
The second sense is the one I’m interested in, and in that one there are plenty of non-Jewish Israeli nationals. They have every right (and plenty of cause) to not identify as such, but that’s the situation as it concerns citizenship, voting rights, etc.
TL;DR: nationality gets used with at least two different meanings in the I/P conflict; one is intractable and the other is straightforward. The straightforward is worth remembering, because far-right Israelis have a vested interest in eliminating it and imposing an ethnic definition of nationality.
On your final point, I think we may well be seeing a theocratic majority there quite soon, will be interesting to see how that goes.
This lie lies at the heart of all of the state's attempts to color fundamentally anti genocide, anti genocide and antiracist criticism of the state as anti semitic.
The country does not represent Jews, just a rather abhorrent form of racism.
I am not trying to explain away Dahl's comments, merely illustrating the complexity underlining all these arguments, and especially ones which allow Israel and its lobbyists to swarm over the arts in the UK and bully them if showing any sympathy for the Palestinians, which is no better than the torrent of antisemitic abuse meted out when there's sympathy for Jewish people.