The fact is that 98% of Americans, were they living in Israel, would be regarded as second class citizens by virtue of not being Jewish.
Just because Israel doesn't keep itself to American standards, that doesn't make Non-Jews second class citizens, just like non-Anglicans aren't second class citizens in England even though it is the official state religion.
I don't think Americans understand the concept of a nation-state.
How is Israel a nation-state? It isn't ethnically, linguistically or culturally homogenous.
The majority speaks Hebrew and share a common religion and identity. Israeli Jews are a people and they form an etnically defined nation.