Israel can and should be a place for Jews to be safe but it doesn't have to be favor one religion or ethnicity. I think Anti-semitism can be controlled especially in a place with a large minority (or even majority) of Jewish peoples.
Before the founding of Israel, Jews, Christians and Muslims generally co-existed with tolerance in the Middle East.
As for peacefully coexisting, would you say that Christians and Muslims peacefully coexisted in Ottoman Balkans too?
Sorry, I don't know about Christians and Muslims in the Ottoman Balkans.. I was more talking about Jews and others in Egypt, Syria, Jordan, etc.
Ottoman rule in Balkans was quite horrific. E.g. Christian’s having to pay tax in young kids most of whom would never see home again. Yet it was rather peaceful with ottomans enforcing the peace :)
I’m not that familiar with Jews in Middle East up to 19th century. But IIRC there were plenty of pogroms. And taxes differentiated by religion was common in most Muslim regimes. As well as overall relation with government, ability to make a career etc.