So in other words, one has to exclude significant, heavily populated areas that are being governed by the state of Israel in order to claim that it's a democracy. It is deeply unclear why one would want to do so, though, given that the same government has given its full endorsement to settlers moving into these same areas, and has given absolutely no indication (in recent decades, at least) of ever intending to vacate these territories.
So in other words, one has to exclude significant, heavily populated areas that are being governed by the state of Israel in order to claim that it's a democracy. It is deeply unclear why one would want to do so, though, given that the same government has given its full endorsement to settlers moving into these same areas, and has given absolutely no indication (in recent decades, at least) of ever intending to vacate these territories.