Far from it.
There is a commandment to love your fellow as yourself (Vayikra 19:18). There is also a concept of responsibility for another Jew ("kol Israel areivim zelaze", see Shevuot 39a and here on MY for more sources on the mitzva of kiruv). From there every Jew has to respect and love other Jews, no matter how close or far from observance they are. (as Chaim noted in the comments, this does not apply to an apikores, see here)
I don't doubt you have observed some Jews who distanced themselves from those who rejected Judaism. This might come from a worry this might negatively influence their children. But there are many examples of the opposite, actually there are entire organizations dedicated to bring those who are far from observance, whether from birth or because they distanced themselves over time. Chabad has 4000+ emissaries dedicated to this mission, and so do organizations such Aish HaTorah, Ohr Somayach, Arachim, and many others.
Regarding the parable you cite, it is a variation (with significant differences) of the Midrash (Bereishit Rabba 43:7 and 49:4) where Avraham provided food to strangers in exchange for blessings to God. I don't believe there is an authentic source for it (it is recounted here but see update below). If the person Avraham threw out was an idolater, Avraham was only following what the Rambam would later codify as halacha (Mishne Torah Hilchot Avoda Zara 2:5)
[...] A convert to idolatry, behold him, he is rebellious against the
whole scope of the Torah. Likewise are infidels of among Israel not to
be judged in aught as Israelites, nor should they ever be received as
penitents, for it is said: "None that go unto her return, neither do
they attain unto the paths of life" (Prov. 2.19) [...] It is forbidden
to converse with them, and to answer any argument concerning them, as
it is said: "And come not nigh the door of her house" (Ibid. 5.8)
The way the tale is recounted above feels very odd (especially its conclusion). I checked with talmidei chachamim and none to date could trace this parable.
UPDATE: I have now received a response from R David Hartley Mark who claimed on his site to recount "an old midrashic tale". He told me he didn't remember where he read it and referred me to here and there. He explicitly wrote "sorry it is not Bereshit Raba or some other lofty tome". I think we can now conclude this "midrashic tale" is nothing but a human invention and is no more midrashic than any other fable.