Hmm, I see...
But I might disagree with you on this matter:
"While I think you as a minority have the right to be represented in the Knesset, it is questionable whether you should get a say on key matters such as immigration rights to Israel, giving up land, war, peace etc. In my opinion gentiles citizens in Israel should avoid such matters. For this reason I also think they should have the option not to serve in the Army."
The minorities of every country, is still part of the country. excluding them out in some governmental issues is not fair, and they should serv the army normally. Ofcourse, I'm not talking about a minority like we have here in israel, where they don't even recognize its very existence. But any other minority, be it racial minority, religious minority, you name it.
If that minority played by the rules (unlike the little minority you mentioned above of mostly muslims) then there is no reason to ignore them in government.
Imo, we should start doing something for that little stubborn minority of muslims that are against us in everything, living among our homes, preaching hatred against us and putting fear into our hearts, we should try fixing this issue first before we even think of bringing the arab minority on par with the israelian government. I hope this day would be soon, I wanna leave a safe place for generations to come after.