Defining Jewishness as race vs. religion has always been a little tricky because for most of us it's more than a religion, but not quite a race.
Whoopi definitely should not have been suspended, or censured in any way. The problem is that race in Europe isn't defined exactly as it is in the US. Here Jews, even when facing anti-semitism, have seldom been regarded as anything but white.
Not the case in Europe. Going back as far as the Spanish Pura Sangre movement of the 14th century, Jews have been considered a race apart, even those conversos who accepted Christianity. The Holocaust began with the Nuremberg Laws, which promoted the Nazis' concept of racial hygiene.
And so on.
Whoopi's view was typically American. While historically incorrect, she apologized & stood corrected. No biggie.