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In one vital attribute, however, Israel is quite different from previous insecure, defensive microstates born of imperial collapse: it is a democracy. Hence its present dilemma. Thanks to its occupation of the lands conquered in 1967, Israel today faces three unattractive choices. It can dismantle the Jewish settlements in the territories, return to the 1967 state borders within which Jews constitute a clear majority, and thus remain both a Jewish state and a democracy, albeit one with a constitutionally anomalous community of second-class Arab citizens.

Alternatively, Israel can continue to occupy "Samaria," "Judea," and Gaza, whose Arab population—added to that of present-day Israel—will become the demographic majority within five to eight years: in which case Israel will be either a Jewish state (with an ever-larger majority of unenfranchised non-Jews) or it will be a democracy. But logically it cannot be both.

Or else Israel can keep control of the Occupied Territories but get rid of the overwhelming majority of the Arab population: either by forcible expulsion or else by starving them of land and livelihood, leaving them no option but to go into exile. In this way Israel could indeed remain both Jewish and at least formally democratic: but at the cost of becoming the first modern democracy to conduct full-scale ethnic cleansing as a state project, something which would condemn Israel forever to the status of an outlaw state, an international pariah.