I'll give a quick response and I'm sure others will add to it.
The integration of Jews from Arab countries in Israel is a controversial story. Israel was at war, under attack from six Arab armies. The population virtually doubled within a very short period of time. Israel tried as best she could to integrate refugees. But we do have pictures and newsreel footage of Jews in refugee camps in the most squalid, unsanitary tents. There were issues relating to shortages of food. There were issues relating to disease. Israel was in the middle of a war. So there were no social service agencies waiting at the beck and call of immigrants to try to assist them.
Moreover, there were many who came to Israel who felt that the traditional Ashkenazi leadership of Israel at the time was not as sensitive as it could have been and should have been to the rich history and vibrancy of these refugees who were coming to Israel and didn't appreciate the vast resources, and skills, and talents that they brought. So for many Ashkenazi Jews, Sephardim were not up to the status of Ashkenazi who came from Europe, were well-heeled, well-educated, etc.
It has been a struggle for Sephardic Jews. Today, even 65 years later, there are still Sephardic Jews in Israel who live in abject poverty, generations removed from the time that their parents or grandparents came to Israel destitute. The ramifications of Jews as refugees still lives on in Israel today.