I just think that at least some people here are jumping on any chance to label Olmert (or any other Israeli figure) "racist".
To most Israelis, and certainly all liberal ones, these historic acts are or border on the shameful. To other Israelis, goyim are soul-less robots. Don't believe me? Google an old Ha'Aretz article called "Taliban in the cabinet", I believe. I want to say that Moshe Dyan said it first (I know Sharon was also fond of saying it), when he said “I am a Jew first, and an Israeli second.”*. That's fine, but when goyim see how freely Isreal has spilled the blood of innocents, sometimes just to make the Arabs look bad (**COUGH** **COUGH** King David Hotel)...well, Olmert's statement is bound to raise a few eyebrows. It's uncontroversial that most Israelis are going to see the comment more or less innocently but in a goy mind it may strike a number of chords, some of them not so harmonic.
Google shows no hits for that article name.
As for the Dayan & Sharon quote, have you got a source? I've never seen it attributed to Dayan, but rather to either Sharon or Netanyahu. In any case, you need to remember that "Jew" also has a national meaning, as well as a religious one, and that's almost certainly how Sharon used it, if he did, in the sense of having concern for Jews worldwide rather than just Israel (Sharon was never particularly religious, AFAIK).
As for the King David Hotel, A) I don't know of any attempts to pin that on the Arabs and B) don't you think it's a bit farfetched to analyze the current behavious of Israel on the basis of something which was done by a minority group sixty years ago?
*That the rabbinate would not be satisfied with control merely over the civil courts in Israel is unsurprising. However there is less and less light that shines between the influence of the rabbinate over civil and legal proceedings in Israel (**COUGH** **COUGH** Deri's law) and when people get to know some of the parties (Heck, Shas alone hold 10% of the Knesset seats) they can't help but feel a little panicked.
I think you're mistaking religious and political interests. "Deri's law" wasn't the result of any increase in religious influence over the judicial system, nor did it result in such; it supported the personal interest of a specific individual (to get out of jail early), who happened to be very influential in Shas. The same thing could have concievably happened in Shinui; there's nothing religious about it.
And come on, how many goyim spend the time to untangle the knot of the history and metamorphosis of Zionism or study any of the, what, 19 political parties in Israel today in order to even begin to compose an informed opinion? And those are just two bullet points off a list of many.
My point is that they don't need to apply that knowledge in this case - though if they
are going to make an accusation of racism, it behooves them to study the target of their accusations beforehand. But as I said above, that a leader considers, all else being equal, that preserving the lives of the civilians of his own country is more important than those of an enemy country should be obvious. To put it another way - if you tak Olmert's statment and strip away all the identifiers (i.e. turn it into "a world leader stated the lives of the citizens of a town in my country are more important then those of the people of another town in the territory of our enemy", does it still come off as racist?
I also think that the Independant isn't completely innocent here. The headline states that Olmert said the lives of Israelis are worth more than those of the Palestinians. But what he actually said (and this is what is written in the body of the article) is that they were more
important. The difference is subtle, but significant. "Important" is a practical value, to determine what course of action to take. "Worth", OTOH, is an ethical/moral judgement. To give a somewhat exaggerated (and clumsy, unfortunately) example: we can all agree that lives are more important than property. But if you take a town with one murder and 30,000 thefts per annum, it might be more
important to divert additional resources to theft prevention rather than to the homicide department.