The people not treated the same are people that live in the occupied territories. The status of those territories has not been settled since 1967. I.e. the West Bank and Gaza. Israel accepts that those are occupied territories (it has not annexed them). The parties they were taken from (Jordan and Egypt) do not wish to take them back. So "Israel" proper does not discriminate against Arabs (broadly speaking) but the status of the occupied territories, that are under military rule, according to international law, is different.
EDIT: https://en.wikipedia.org/wiki/Arab_citizens_of_Israel#Politi...
No idea about the rest of your questions, although the latter two are irrelevant (find any country where every group is doing just as well - it doesn't exist).
(That’s not to say they’re not infringed implicitly in the same ways a minority group in the US or Europe is, but the law gives Israeli citizens generally the same rights whether they’re Arab or not.)
Think about that for a moment. What would you call such a place? How would you feel being born on the wrong side of the fence?