This is an interesting claim. Firstly--to my knowledge--there is no such word as 'subjagation'.
Secondly, Israelis allow Arab citizens who are in no way subjugated. There are arabs in the Israeli parliament.
They conquered the so-called "occupied territories" fair and square, after a mass unprovoked by arab nations in 1967. Those who found themselves part of newly-annexed land (which is what they are) could have decided to (a) leave Israel of their own free will; (b) emmigrate to Jordan, which was set aside as a Palestinian state (even there there was no historical people known as 'palestinian'). They chose (c) to hang around and become and breed terrorists.
There is one response to terrorists, and that is simply to kill them all. Not bulldoze their houses. Not allow them to strap dynamite to their children. Simply kill them all; the world will be a better place.
--Boris