Mr Nagel’s dream is describing the situation in the West Bank.
Most liberal Zionists would reject it almost completely as a description of Israel itself.
That is because the discrimination against non Jews inside Israel, while very real, takes a different social and legal form and oes not match a lot of what he describes in his “dream”.
To cite only one of his examples, in Israel there are NO roads which are only open to Jews, while this IS the case in the West Bank.
The Palestinians “of 48” (= Palestinians with Israeli citizenship) live in a situation often overlooked and usually misunderstood.
While analogies are imperfect, it appears closer to “Jim Crow USA” than Apartheid South Africa.