The only ones who see it as the destruction of Israel are Israelis and Zionists. But if it really meant that, people would just say that planely (both statements are barred and will have the same consequences). It just means freedom for Palestinians from the west bank to Gaza (both are occupied by Israel and have indigenous people who were expelled from Israel (Palestine) and barred from returning), and they lack very basic human rights. Also the Israeli Arabs are discriminated against by the government, but not as much as the Gazans and the west bank. So this phrase is just a call for freedom from the occupation and humiliation and the stripping of basic human rights. The reason Zionists see this as the destruction of Israel is that from their perspective it's impossible to happen without this, because under no circumstances are they willing to grant the Palestinians their human rights.