This worrisome most serious question arises ever more with the rise in dangerous fundamentalism of Islam among the Palestinians, as they are more and more pro Hamas, which advocates for an all Islamic nation in it's most radical form, Hamas has already started the beginning steps in attempts of chasing the few Christians (still left from Arafat's Islamization & "cleansing" of Christians of Bethlehem) out, like taking on the YMCA & intensifying the practice what is common among Palestinian Muslims, to be threatening Christians who are reluctant to participate in anti Israel violence.
True, Israel is one of the most cosmoplitan multi religious and multi racial states, a significant portion of it's population is observant, the system however is still overall secular democratic.
Let's not fool ourself that Abbas is that all democracy or freedom or equality, in fact a Jew is still not allowed to reside in Mahmoud Abbas' version of ethnic cleansing Palestine, nor does Islamic gender apartheid on women & honour killing epidamic see any reduction among Palestinians, then again so is the dire state of even most moderate Arab countries like Jordan, but at least he doesn't call for a Jihadi type, the like of: Hamas/AlQaeda/Hezbollah.