Johnboy, As you say, what is usually meant by "Jewish State" is not a liberal democracy and its proponents ignore the consequences of this on non-Jews. However, you put too much emphasis on the issue of zionist apologetics. An increasing minority within Israeli Jews is beginning to demand a secular Israeli state. And they do it while considering themselves zionists, even if they are proposing something that contradicts basic premises of historical Zionism. As long as these basic issues of civil rights get solved in the direction of a liberal secular democracy, it doesn't matter if Israel still defines herself as a "Zionist state".
UN chief condemns Palestinian toddler killing, urges calm (Reuters)
from the article: The impossible forfeit