I’m not saying it’s right, I’m just saying that this law needs to be viewed in the lens of national conflict rather than racism. The Israeli right wing does in fact consider the Palestinians in the West Bank Jordanian or generally “Arab” even though Jordan and the Palestinians themselves may not.
Also, in reference to Black September, the whole point of the Black September war was that the Palestinians considered themselves the rightful rulers of Jordan/Palestine rather than the British-installed Hashemite monarchy, and Israel has no contention to this, besides that the monarchy is not inclined to war with Israel. Still, “Palestinians living in Jordan” to them _are_ Jordanians, and Jordan is in fact the Palestinian state, which was the whole point of the British partition. The British making awful partition plans is not unique to the Levant, by the way.