...I suspect there are a great many who were raised in the same way I was....that all people are of value and should be respected.
I was raised pretty much the same way, but I also grew up with grandparents who survived the holocaust, so I was aware, from a very early age, that not everyone feels the same way. In our house anti-racism was of major importance, but I know plenty of other parents raise their children to believe that all arabs are terrorists and dangerous. I remember once, as a small child, I heard a girl in school using the word "arab" as a curse. I once repeated that at home and my dad gave me quite a scolding - I remember him saying: "Hey, this kind of talk will not be tolerated in this house young lady, OK?" or something like that...
Within the Palestinians territories it's quite different, I'm afraid - they teach their children to hate us from the moment they're big enough to understand something - at least that's the impression we get. Yes, I know - they have their reasons to hate us, I'd be the last one to deny that, but they - at least the extreme ones, are only willing to see their part of the conflict. For them the only solution is violence and killing - can't make much progress like that, you know...
As for the arab minority living in Israel, that's a different matter - I met so many of them in college and we always got on great together. We never felt there was any difference between us. Just never disscussed these issues, you know...that was some sort of a silenced agreement between us. It's only in times of war when I sometimes lose my mind a little. I told you a while ago about the arab cashier woman in the grocery store, who annoyned me for some reason and in the end I just said "Oh, why don't you just go blow yourself up in Gaza..." -that was an awful thing to say, I know, I just wasn't myself at the time - people were killed in terror attacks practically every day, and we were all on the verge of explosion at any given moment. It's one of the things I should learn - restrain myself before saying things I regret later, especially now that I have a child - I'd never want him to hear me talking like that.
In fact, there was another incident, around the time of the grocery store one. Two arab boys walked by me in the street one day, and began to "make faces" at me or what ever you call it. They were a lot younger than me, so it was nothing serious... I was so annoyed at the moment so I just asked "why don't you just tell me when the next terror attack is, so I can be ready", and actually they said something very nice. Their answer was - "Hey, we're just as Israelis as you are, OK?"...