I agree that there is anti-Semitism, but it goes beyond Islam and it's not fair or right to equate Islam and anti-Semitism as synonymous because that demonizes muslims who aren't anti-Semitic or anti-Jewish (at this point you have to distinguish 'anti-Semitic' from 'anti-Jewish' because 'Semite' is a racial term whereas Islam and Judaism are religious ethnic terms.
In practical terms, the holocaust happened in Europe, which still exhibits a great deal of anti-Semitism in the form of anti-Islam. Some Islamophobes will tell you that they're against the culture/religion and not the people, but that assumes that there can't be cultural differences that aren't aligned with religious differences.
Anyway, the question is whether Israel can deal with anti-Jewish attitudes without exercising national sovereignty to exclude non-Jewish people from citizenship rights. If they can't, then why would anyone expect them to surrender to ridicule from within?
Democracy, in theory, makes it possible to have non-violent revolutions within a unified nation, but for that to happen the people being 'converted' have to consent, and for them to consent, their right of dissent has to be respected. So you could theoretically have a non-violent Israel where non-Jewish people use democratic means to undermine Jewish authority, IF Jewish people consent to that - but then you're dealing with deep religiously-rooted POVs that are probably not open to democracy any more than the Pope is going to be open to changing deeply held doctrines of Catholicism because some secular politics popularizes it.
The real question here is how to respect the right of self-determination of religious people without eliminating the ability to engage in democracy, i.e. constructive non-violent political discourse, with others who think/believe differently. Is it even possible, or does everyone in the world have no other choice but to establish independent national sovereignty and fight to exclude dissenters and repress their ability to make inroads toward influencing otherwise sovereign national politics?