State sanctioned discrimination?
No. That's just a byproduct.
Settlements for ethnic-Jews only?
As racist as it gets but again, that's not the issue.
Nope. لا. לא. Not that either.
There's one reason why this law is so needed by the right wing gov and that reason lays bare the only difference that exists between the right wing (explicitly racist & supremacist)
Article 1(c) of the law states the following:
"The realization of the right to national self-determination in the State of Israel is unique to the Jewish people" and that's what it's all about.
All that the honest supremacists need is to make sure that no matter what the demographics looks like, they and only they will be the masters of the land.