This is a revisionist view that requires ignoring a lot of historical facts. Almost a million Jews were expelled from MENA countries in the 20th century, many of whom survived only by escaping to Israel. The Palestinian Authoriry has never accepted any status for Jews. Christians, Muslims, Druze, yes, but no Jews.
Meanwhile, there are about 2 million Arab citizens (mostly Muslim) of Israel who are entitled to equal rights, including government subsidized Churches and Mosques.