Sephardim are still looked down upon by many ashkenazim in Israel and the government is still anti-sepharadic to an extent, perhaps it is because many hold right wing, anti-arab views (justifiably), but most likely the "Shwortzechai" mentality still exists amongst some Ashkenazim.
There was a Yediot Ahronot piece a few weeks ago that found that Moroccons for example are still overlooked for jobs in favour of ashkenazim with lesser qualifications (it must also be said that Russians, Ethiopians and Charedim were also overlooked).
Does anyone really believe that the Israeli government would allow arab rockets to fly in everyday on North Tel Aviv or Ramat Hasharon? They don't care about Sderot, a mostly Sepharadic town.
This Sepharadic Dating site is a great idea!