First of all, this law has NOTHING to do with Palestinians. This law prevents Israeli citizens of Arab descent from owning lands in their own country. This is meets every definition of discrimination and is quickly approaching that of apartheid.
This was discussed last night on CNN, and in the report we also found out that Israeli Arabs are denied jobs, denied housing, their communities are denied welfare services (they have the worst roads, their schools are under funded and overcrowded in comparison to Jewish schools), have to face strict security checks (even though they are Israeli citizens) all because of their ethnicity.
Such a system would NEVER, EVER be allowed in the U.S. (my God, the uproar!), and like someone else said, if Austria were to pass a law saying Austrian Jews are not allowed to purchase lands, or if Austria were to legally discriminate against Austrian Jews, we'd NEVER hear the end of it - they'd be suspended from the EU, they'd lose their membership on international bodies, they'd face sanctions from the EU, UN and US, and would be ostracized by every country great and small. Why is Israel allowed to do this, and where is the international uproar? And why do they still claim to be an outpost of western democratic values and principles?
I'm afraid this latest move by Israel shows their government for they are. They don't care about peace, they don't care about following the rule of law, they care about one thing and one thing only - JEWISHNESS. The whole state is founded to perpetuate Jewishness, to accept only Jews, to only look after Jews. This is as RACIST an idea as I've ever heard. Jews from all over the world have the automatic right to immigrate to Israel and enjoy every freedom known to man, but the non-Jew has to jump through hurdles and barriers, and even if he gets there, does not have the same rights as the Jew BY LAW.
Let me just stop before my emotions betray me.