So if someone said they wanted your country to nuke itself it wouldn't be offensive? I'm not Israeli, but I don't stand for racism of anyone.
I wouldn't really call it racism, as he's referring to the nation itself; more so, I believe that would be referred to as nationalism, as it assumes people of land X are different than people in land Y (to compare, one could argue that both groups of people are still people, no matter where they're from, and whose differences are negligible when it comes to their lives.)