Welcome to FR.
I have always considered Israel to be more theocratic than Democratic. Israel is based on the principles of Zionism, which posits that Jews are the chosen people of Yahweh and that he wants them to have exclusive control over Palestine. Israel is a nation state. Instead of this nation being one purely of blood like France, Spain, or Japan, the nation of Israel is more general. It reffers not only to all the decendants of Jacob who keep to the Mosaic faith, but also to converts and their children.
At any rate, Israel is a democratic country, with the
Demos being designed around a particular
ethnos. That does not mean taht non-Jews do not have rights. Christians, Muslims, Druze, and atheists are all full citizens.
That doesn't leave a allot of room for a secular state or negotiations with native peoples.
1. Israeli Arabs and Israeli Druze are full citizens.
2. Israeli Arabs are decended from the Muslim Arab invaders from 640 onwards. There is nothing native about them anymore than there is for Europeans who settled North America.