I agree the Koran says to kill the infidel IF he doesn’t submit. Those who submit are (supposed) to be treated as I said. In practice this treatment has varied from near equality with Muslims to pre-Holocaust Nazi treatment of Jews (ghettos, special clothing, limitations on occupations, etc.)
I would submit that near-equality with Moslems has not happened except if the ruler has been near apostate as in the case of Akbar. The norm has been treatment as second-class citizens.