PhilGoetz comments on Open Thread: January 2010 - Less Wrong
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I would consider that one of the better possible outcomes. As long as it leads to a conversion from a race-based state to a pluralistic society, rather than cattle cars and smokestacks.
It's not really a race-based state, in the sense that one can't arbitrarily choose one's race, but under the Law of Return one can choose to convert to Judaism and instantly gain Israeli citizenship upon immigrating.