It would be interesting to see the ration between the Arab Israelis wishing to marry an Arab from WB/Gaza and Jewish Israelis wishing to marry a Jewish from WB/Gaza. Laws make sense in a context of a society.
There is a fundamental difference between a law that prohibits a specific ethnicity from doing X, and a law that prohibits everyone from doing X, but a specific ethnicity/minority is more affected by it than others. The former is pretty much never legitimate, while the latter is often unavoidable, and I imagine exists to some extent in any country with minorities.
This law very explicitly discriminates against non-Jewish Palestinians (and Lebanese and a few others). It also disproportionately affects Israeli Arabs and others who are much more likely than Israeli Jews to have spouses who would be discriminated against by this law.