Is Bernie going to be allowed to get away with this drive-by smear of the Israeli government?

First, a point of clarification that the linked article doesn't address. Bernie's employment of the term "racist" is a misuse. Racism means a belief that particular races are superior or inferior genetically speaking relative to others.

It may seem like nitpicking, but I don't think so. On general grounds, as a writer, I do not like to see the sloppy misuse of terminology take hold in public discourse. It's the first step toward widespread imprecise communication, which eventually makes it impossible to get one's point across.

This is particularly so in the case of the racism charge, given the causal way it's lobbed these days.

Bernie here is actually accusing the Israeli government of bigotry. Israelis and Palestinians are of differing ethnicities. but they belong to the same race.

That said, it's still a spurious charge.

Consider:

Over the decade of the Netanyahu governments—as Israel’s left-wing daily Haaretzreported a year ago—

The number of Arab Ph.D. candidates in Israel has more than doubled….

 The number of candidates rose from 355 in 2008 to 759 in 2018….

 In the same period, the number of Israeli-Arab students in master’s degree programs rose by 90%.

Currently, 6.7% of Ph.D. candidates in Israel are Arab citizens of Israel, up from 3.5% in 2008. Though this rate is still significantly lower than their part in the general population—which stands at 20%—the Council of Higher Education’s Planning and Budgeting Committee defined these statistics as a “revolution.”

There has also been a significant rise in the number of Arab students studying for a bachelor’s degree. Between 2010 and 2017, [it] rose from 26 thousand to 47 thousand.

Just the other day the Washington Post—not exactly a shill for the Netanyahu government—reported on “a recent effort by Israel to improve living conditions in East Jerusalem and better integrate the Arab population.”
The Israeli government, says the Post, has 

...designat[ed] nearly $50 million to upgrade waste and sewage systems as well as enhancing transportation and adding classrooms. There has also been a push for more Arab schools to adopt the Israeli curriculum, including Hebrew instruction…. [T]here has also been an easing of the process for approving building permits….

Meanwhile, there has been an increase in East Jerusalem residents obtaining Israeli citizenship…. Last year, about 1,200 Palestinians were granted citizenship, the most ever…. Most Palestinians living in Jerusalem hold residency cards allowing them to work in Israel and receive state benefits.

If this is racism, it’s a strange form of it. 

Now, Gaza? Not much that can be done there, except for Israel to gird itself against the daily rocket barrages and close off tunnels wherever if finds them. Hamas is in such complete control there that there's not a lot of opportunity to lift the ordinary residents out of the poverty into which their leaders have delivered them.

But it's a different story in the West Bank:

As for the West Bank, it’s been relatively quiet over the past decade—not least because tens of thousands of West Bank Palestinians work jobs within Israel and in Israeli West Bank communities that pay three to five times better than Palestinian Authority jobs, and also offer benefits that PA jobs lack entirely.

Will this go unaddressed by the media and Bernie's fellow Dem candidates?