'Democracy' is not a reason for a 'Palestinian state'

Eugene Kontorovich writes that Israel doesn't need a 'Palestinian state' for Israel to be both democratic and Jewish.

The problem with the democracy argument is that it is entirely
disconnected from reality. Israel does not rule the Palestinians. The
status quo in no way impeaches Israel’s democratic identity.

It is true that the Palestinians are
not represented in the Knesset. But