Theocratic states and democracy

It is understandable, that for Israelis, particularly those born and raised in Israel, the idea, that a Jewish state is morally undefendable - whether it is an idea raised by ultra-orthodox Jews, antisemitic Islamists or racists, old school zionists, or simply believers in democracy in Israel or elsewhere - is a hurtful idea. However, for those who belong to the last two groups mentioned above, this idea is not one which rejects Jews. We are neither antisemites nor self-hating Jews. We recognise the right for Jews to live in peace, practicing their religion and culture if they so wish. However, we also believe, that democracy should mean the protection of those rights and other rights for all, regardless of ethnicity, belief, gender or sexual orientation. There should be no state which represents the believers in one faith only, nor a state for one ethnic group only, nor a state for men or for women (that would be hell!) nor even a state for homosexuals, heterosexuals, bisexuals or transgendered!
This of course, means, that an Islamic republic or kingdom is also morally unacceptable to us, just as would be a Rom state (let's not forget, that the Rom people have continuously been oppressed for centuries).
There may be regions where Muslims are the majority, just as there are regions where Hindus are the majority. India, and Bali, however are not Hindu states.
So, Israelis, if they believe in democracy, can work towards true democracy for all in their country. While the immediate solution to the violence in the region is probably a two-state solution, no true believer in democracy should rest until all are treated equally at all levels. Jews have a right to live in Israel-Palestine as do Arabs, but neither group should have more rights than the other.