See the recent 60 Minutes episode on Palestinian Christians in Israel. Bethlehem is now down to 18% Christians (it used to be nearly 100%). The Old City of Jerusalem had 30,000 Christians thirty years ago but is now down to just a handful.
The problem is not Israeli policies that specifically discriminate against Christians. However, the miserable conditions of living in the Occupied Territories make life undesirable for all of its residents. And those who can get out, do.
This news reminds me of a moving article in National Geographic that I read three years ago, “Arab Christians: The Forgotten Faithful”:
http://ngm.nationalgeographic.com/2009/06/arab-christians/belt-text
If anything, this article illustrates how blissfully unaware we are in America to the oppression and persecution that Christians face around the world today. We should be mindful of how blessed we are, the American faithful, to have a separation of church and state. This is especially evident in the current crisis in Egypt, a country in which Coptic Orthodox Christians are unjustly treated in ways that range from imprisonment to death.
http://www.kansascity.com/2012/05/21/3620991/egypt-court-gives-12-christians.html#storylink=cpy
http://atlasshrugs2000.typepad.com/atlas_shrugs/2011/04/post-revoltuion-egypt-muslims-burn-stgeorge-coptic-orthodox-churchcracking-crosses-.html