Because such a state would be Muslim majority from the start, and become an Islamic state, which then chased the ex-Israelis out. After all, most of them are grandchildren, etc, of those who returned in the 1900s.
Why should it be an Islamic or Jewish State? How about a democratic state with the separation of Church and State, and thus a religiously-neutral or secular government, and where religious freedom is codified in a Constitution?
Lamentably, the only security the Jews have is a nation wherein they are no longer a minority. Injustices were committed to get there, as they were in the histories of USA, Britain, and pretty much everywhere that the majority is not an indigenous population. But there is no way of reversing the calendar. 2 states at arms-length from each other is the best to be hoped for.
At least until a local boy born in 6BC shows up to take over
ICXC NIKA