Israel has shown time and time again that they are open to sharing the space with Palestinians - they were constantly offering a 2 state solution, but Palestinians (Hamas more specifically) refused. Their goal is to have all of the land to themselves and to make it a completely Muslim state, even though Muslims are 100% accepted in Israel, with some of them working in the Israeli government.
Actually, Zionists have historically shown a willingness to share the land with Muslims through several peace initiatives and proposals for coexistence. From the early 20th century, Zionist leaders supported the idea of a two-state solution, including the 1947 United Nations Partition Plan, an offer which was accepted by the Jewish leadership but rejected by Arab leaders at the time.