The occupation of the West Bank is placing young soldiers--who, as kids, were scarred by the Palestinian suicide campaign of the early 2000s--in a position where they daily chafe against the Palestinian population. It is not a good situation, and most Israelis know that. But it is not done because of racist motives.
After the very bad experiences Israel had withdrawing from Lebanon and Gaza, there is little appetite in Jerusalem now to unilaterally withdraw from the West Bank to the outskirts of Jerusalem and Tel-Aviv.
The ongoing, vicious campaign to smear Israel as an Apartheid state because of that, is a patent attempt to force such a withdrawal despite the potential violence and terror that it is universally expected to afflict on Israel, as for instance, is depicted in Jonathan Bloomfield's award-winning thriller, "Palestine."