I would point out to people that Hamas is not interested in protecting the rights of its subjects. Even if we accept the premise that the palestinians are being subjected to racist oppression, their response is insane. Armed conflict against Israel could never be effective in securing the rights of Palestininans. Israel is too heavily armed and because of the actions of Hamas the war effor against Hamas has about 95% of the Israeli Jews supporting the conflict. Jews make up about 75% of Israel's population. Hamas could never in their wildest dream secure the rights of their people through armed force.
A quote from the Hamas Charter shows exactly how they feel about other means of dealing with Israel.
"Peace] initiatives, the so-called peaceful solutions, and the international conferences to resolve the Palestinian problem, are all contrary to the beliefs of the Islamic Resistance Movement. For renouncing any part of Palestine means renouncing part of the religion; the nationalism of the Islamic Resistance Movement is part of its faith, the movement educates its members to adhere to its principles and to raise the banner of Allah over their homeland as they fight their Jihad: “Allah is the all-powerful, but most people are not aware.” From time to time a clamoring is voiced, to hold an International Conference in search for a solution to the problem. Some accept the idea, others reject it, for one reason or another, demanding the implementation of this or that condition, as a prerequisite for agreeing to convene the Conference or for participating in it. But the Islamic Resistance Movement, which is aware of the [prospective] parties to this conference, and of their past and present positions towards the problems of the Muslims, does not believe that those conferences are capable of responding to demands, or of restoring rights or doing justice to the oppressed. "
It is clear that Hamas was not an organization formed to effectively deal with the problem of Jewish oppression of Arabs, but an organization founded to pursue the fantasy of forming a racist theocracy out of thin air. Even if this were a desirable outcome no reasonable person would assume that this was even remotely possible. They spend what little resources the Palestinian people have on weaponry rather than attempting to diplomatically and econmically grow their influence.
I know if I sat one of their leaders down and told them that what they need to do is increase ecnomic oppuruniy. He may tell me that this is impossible because Israel prevents them from doing so. However military conflict with Israel will never be an effective policy, where as commercial integration with Israel can only be made possible by disarming. This either means they are deluded, incompetent, or just want the small ammount of power that comes from running failed state.
Israel is not the greatest country in the world.. In terms of economic freedom they are considered to be in the "modertaley free" tier (Spain is in the same tier) and are rated at a 68.4. This is by the very generous standards of the Heritage Foundation. They have a draft. Also, they appear to struggle with institutional prejudice against Arabs. However the sad fact remains is that Israel while not being Switzerland is stil a government which basically attempts to respect the rights of all its citizens, Arab, Jew, or whoever. The fact is whatever evil things Israel may have done to the palestinians it is still Israel's responsibility to dismantel Hamas while protecting the rights of its citizens.
http://en.wikipedia.org/wiki/Racism_in_Israel#Racism_against_Arabs ( I haven't looked into this particular issue too deeply, so I suggest if you are interested to read the studdies cited to make sure the claims were produced under sound methodology).