> But a much better solution would be a single ethnically neutral country that didn't discriminate at all.
That is Israel. Arabs have full citizenship rights in Israel. Israel is a secular nation. Israel has never had a problem with living with Arabs, it's Arabs that are dedicated to wiping Israel off the map, and killing all Jews.
> Don't have any "rights" of "return" that are based on race or ethnicity or religion.
The idea of Israel is to provide a very tiny, but safe, space for Jews. If you remember, modern Israel was created right after WWII.
> Don't put things like marriage under some kind of religious authority
I agree, that was a mistake. But, certainly you cannot claim that Muslims nations are any better.
> Just have one (democratic) country with equal rights and justice for all.
That is Israel, everybody has the same rights. Which is much more than a nation like Saudi would ever offer.