There would be no problems if all Muslims and other minorities supported the Jewish State. The Middle East does not need yet another Muslim State in place of the Jewish democratic State of Israel. Muslims should thank their lucky stars if they are living within Israel's borders under Israel's jurfisdiction, and are not in Syria, for example. Apparently, some Muslims in Jerusalem have a true appreciation of their situation for according to news reports said that if their area of residence were to come under Palestinian Athority control, they would move further into Israel.
Law expanding definition of terrorist activity passes first Knesset reading (Haaretz)
from the article: Egypt's new president, Mohammed Morsi, vows to support Palestinians