Yes, that's what's gonna happen.
Not that racial profiling is anything new in the world, if you try to enter Israel with an Arabic family name no passport in the world will spare you the troubles.
I'm not denying what you said at all - but that's not the same.
Israel doesn't have an authomatic ban for Arabs/Muslims.
There are businessmen from Arabic countries entering in and out of Israel all the time. Egyptians, Jordanians - countries who allow their citizens to enter Israel, Israel trades with people from the middle east all the time.
Sure, there is profiling at the airport- to find out whether the person seeking enterence is a terrorist/problem maker. If he's from an Arabic country and has a legtimate reason to be here, and he checks out - he will probably enter.
The Dubai police cheif didn't say "We'll check to see whether their passport is a real one/identity if legit because we're worried about more Mossad agents" - this is a general ban against people with a dual nationality, regardless of what they might do.