the fact that arabs live in israel has no relevance to the issue. there are many kinds of people living in most countries but they remain nation states of the predominant ethnicity. the french are french and the italians are italians. you seem to be quarreling with israel's declaration of independence which was written by secular jews. israel was admitted to the united nations as a jewish state. the sole purpose of the partition plan was to allow the jewish people self-determination and a homeland of their own. this is the meaning of zionism.
Netanyahu orders more demolitions of terrorists' homes in attempt to crack down on terror (Haaretz)
from the article: Abbas predicts 'very difficult' time for Palestinians after UN bid