Nowhere in the article are these people -- your fellow American citizens -- are terrorists or even accused of such. I say, good for Condi for standing up for all American citizens.
If the Israelis have proof that these people are assisting in terrorism, then that's one thing. From the way the article reads, it appears that they are opposing them simply for being Palestinians trying to help other Palestinians. And if there's no terrorism link (that is, a REAL terrorism link, not the racist, bigoted paranoia exhibited daily on FR), then the Israelis are way out of bounds. If they want to keep discriminating against Americans, well, that is their prerogative... and it's our prerogative to just keep the $3 billion we give them every year.