Outside their borders? Do you mean the 1948 borders when Israel was attacked by several Arab countries?

Not everyone. The one group which was hounded and exterminated throughout history and gets woven into conspiracy theories to this day.

Nobody credible is arguing for a single state. Two state is the best hope, although there are plenty of Arabs living in Israel.

Israel is largely secular although Likud are doing their best to undermine that progress. Palestinians are largely religious extremists.