Critical theoretical models usually aim to explain complex sociopolitical realities and open some space for constructive change. The "ethnic democracy model," developed by the Israeli sociologist Sammy Smooha, comes to justify the existing state structure in Israel in which democracy is selective and differential vis-à-vis the various social groups in Israeli society. A systematic critique of this model demonstrates the attempts made by Israeli political sociologists to turn the ethnic nature of Israeli democracy into a stagnant ideal-type in a time where regime dynamism and democratization is considered an ideal in world politics. In order to pinpoint the deficiencies in the ethnic democracy model, multiculturalism is utilized as a normative theory that better explains the sociopolitical reality in Israel. This paper concludes by suggesting searching for state recognition of the political benefits of differentiated citizenship and group rights to reduce the rising ethno-cultural conflict in Israeli society.