1. Support for Zionist endeavor by the Great Powers never precluded thought for the present inhabitants of Palestine, as the Balfour Declaration makes clear, & the preceding McMahon-Hussein correspondence promised.
2. The Jews won't leave Israel anymore than Americans will vacate North America. It's a position not even worth pondering.
3. The issue isn't Jew vs. Muslim. Israel has maintained cordial, if not always perfect, relations with Egypt for half-a-century & Jordan for nearly as long (in fact King Abdullah I was assassinated in the early 50s b/c of his alleged sympathy for Israelis). Muslim majority Turkey recognized Israel in '49 & in spite of recent Erdogan-prompted tensions, Turkey has been one of Israel's most important strategic partners. Saudi Prince bin-Salman, when not decapitating dissident reporters, has stated that Israelis have the right to live peacefully on their own land. Oman, Bahrain, Morocco & the UAE have all conducted high-level visits & are buyers of Israeli tech.
Also, not all Palestinians are Muslim.
The issue is not between religions but rather a people being marginalized & provoked. Likud is Hamas in better suits working at a slower pace, but both sides playing for the whole enchilada & for whom genuine compromise is the ultimate infamia.