...I think it creates a subconscious belief that some citizens are better than others and this is reinforced in a system of citizenship that gives different rights and obligations to each group. It strives for a "different but equal" system, but I don't think that can truly work.
What would you propose as a solution?
Should we give the southern US to the blacks and the whites can keep the north?
For one, I think there should be only one citizenship - Israeli, that covers all citizens. I think that would be more of a uniting factor, whereas a divided system, divides citizens.
It would be as if the US had two categories of American citizenship: Black Americans and White Americans. That doesn't mean social/ethnic/racial divisions would cease to exist, but it would be easier to be Americans first.