This article underlines the point I made. Israel maintains separate data on citizenship and nationality on their population, and "Israeli" is not a "nationality" in that database. Of course Arab nationals of Israel have "Israeli" on their passports, but they are not "Israeli" in that database.

There are two different things here: what non-Jewish citizens of Israel identify as, and what their functional status is. The first is a component of the world’s most intractable conflict; the second is a question of nationality in the most basic sense: citizenship, identification on passports, etc.

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.

No dispute from me, simply pointing that the state itself pursues a different direction than most on this subject by separating the two things.

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.

It's complicated but I think what they're getting at is that the national demographics / census data for Israel does not have an "Israeli" nationality.