The irony is they may never admit it, but I am sure most of the Arabs living in Israel would rather live in a western Jewish state as second class citizens than the alternative, which would basically be living in some medieval feudal Sharia society, as a satellite of Iran.
Its a tough moral call. Either we accept Israel as a Jewish state, and allow the status quo to continue, or we force it to democratize fully, which would turn it into a shithole, and the last thing anyone in the world wants is a shithole with nukes and the conventional military technology Israel has.
It would seriously jeopardize the safety of the entire world if Israel, Gaza and the West Bank were united and democratized, and a group like Hamas or Hezbollah had access to that military technology through democratic elections.