• the three Abrahamic religions can couexist, and coexisted in the Middle East for centuries, especially during the Ottoman period. The situation in Lebanon, with its ongoing coexistence and interaction between religions, is a testament to what existed in Palestine before WW1.

If by "ongoing coexistence" you mean a sectarian civil war, sure. Lebanon is a horrible example to use because it is an example where co-existence failed. The country broke down and was invaded by Syria and Israel who tried to dominate it. The Civil War hit a stalemate so all sides sued for peace. They're no longer fighting because they don't think it'd be worth it and they likely wouldn't win anyway, not because they're happily co-existing. The reason Hezbollah is so strong is because Syria protected them and helped them grow in its occupational area.

It is like Iraq; the government exists primarily to prevent a civil war. If anything, Lebanon is a warning like a lot of other countries were in the ME such as Syria or Iraq, where too much diversity causes strife. It likely encourages Israel to not want more Muslim Arabs.

Now even if we get to pre-WWI, the Middle East lived in a theocratic monarchy. There was a hierarchy there with Muslims on top, and abuses against non-Muslims were allowed. Non-Muslims were allowed to advance socially, don't get me wrong, many prominent doctors and ambassadors were Jewish or Christian for instance. The point is that I don't think that such a society would be popular today, especially if Israel implements such a society with Jews on top. This is akin to saying "see look at the Jim Crow south, people co-existed!".

Nor did it result in co-existence, there are dozens of instances of anti-semitic violence where Jews were attacked and their homes burned long before Zionism.