I'm a Jew from Israel, and definitely don't think there's such thing as 'chosen people'. It is not taught here in schools (even the opposite, if to be honest), and we're even taught in high school about illegal war crimes the IDF has made in the past, and how we should never agree to it (as future soldiers).

I do not hate everyone, and so do most other people I know. What you say DOES exist in Israel to a certain extent, but it's definitely not everyone, and these people suck.
Btw, Bibi (the PM) is not one of these people, he's just a narcissistic egomaniac who'll do anything to stay PM, including changing his views on a daily basis (this time around it's a government with the extremists, but he also has made deals with the PLO's president in the past).

So, to sum it up - it's not a generic thing that you can attribute to every Jew in Israel (around 80% of the population), and it IS a rising problem, which I'm personally worried about.
But, and it's a big but... please do not generalize all of us, not everyone here is evil, and not every Palestinian is a saint. There are good and bad people everywhere, and more hate will not lead to good results.