Actually, PM, to my horror I have heard Israelis say that. I've heard an otherwise perfectly nice university professor say, "The only good Indian is a dead Indian," referring to the Palestinians in the neighborhood. Another woman, a seemingly sane social worker, told me when I recounted the plight of a Palestinian baby with a heart defect that the baby would just grow up to be a suicide bomber if it didn't die now. The hysteria on both sides is simply unbelievable until you experience it.
Mandi