That was Israel's choice. There are also Arabs in the government. It still operates with Jewish principles. There are many in Japan who are not Japanese yet it is a Japanese country. With only 14 million Jews worldwide and almost as many Jews in the US as in Israel there is only one possible Jewish state and you can define it however you wish.
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Netanyahu arrives in Paris for UN climate summit (Haaretz)
from the article: Spain recognizes Israel as Jewish homeland, for first time