It it leads to a peaceful and stable state that would be a good thing.
Is there a need for a Jewish state? Lots of ethnic groups do not have their own state. Mine does not - a much smaller number of us, and we are disappearing through mixing.
But you don’t even need to look into history. Today Malaysia and Indonesia both have non-muslim minorities. Bosnia and Herzegovina has slight muslim majarity and is doing relatively fine.
When Turks left about 100 years ago Muslims were a minority but thanks to much higher birth rate they now want to set the rules in Bosnia. Serbs know that, that's why they resisted, and still resist, a unified Bosnia.
Ottoman Empire tolerated Christians, true, but to achieve anything in life you had to convert to Islam. Otherwise you could just remain a haraç-paying Christian peasant without any chance of education or growth. Haraç was a tax for being a non-Muslim.
It was super hard to be a thriving Christian under Turks. In fact the Turkish policy was to demographically and economically slowly bleed Christians and for those with ambition to convert to Islam.
So maybe there’s no strict need for a Jewish state, but I can see how going back to a collective of (often oppressed) minorities is not appealing.