The implicit assumption is that any place with a majority of "Arabs" would ethnically cleanse all the Jews or become an Islamic theocracy, so we must view everything through the lens of competing ethno-states. It's important to challenge this assumption. Ethno-states are inherently violent because every population is a mixture of different ethnicities, and an ethno-state needs to maintain a majority of a certain population. If the "wrong" group's population grows in an ethno-state, it becomes a "demographic problem" that the government needs to "solve". This is why carving up the world into such states is never a lasting solution for peace.
Aside: "Arab" and "Jew" are not mutually exclusive. You can be an Arab Jew in the same way you can be a Hispanic Jew - Arab is a distinction based on one's mother language not one's religion. This is why the Arab League includes countries in north Africa where most people aren't descended from ancestral Arabians. The history of and literature of Judeo-Arabic is an interesting rabbit hole: https://en.wikipedia.org/wiki/Arab_Jews