That's not actually zionism at all, but a strawman. Zionism is nothing more than the support for a Jewish nation state in the land of Israel. Nothing about Jewish "only", especially given the near-2 million Israeli citizens who aren't actually Jewish.
Thats the context it's being used in, in relation to the Arabs who are considered second class citizens
Anyway Bibi is out of control, but unfortunately his actions, no matter how crazy, just feed into his hawkish image