What's Behind the 'Jewish State' Idea?

In my discussions on Palestinian-Israeli negotiations with various informed audiences around the United States during the past month, the question that comes up most often is about how the Palestinians can, should or will respond to the Israeli government demand that they must recognize Israel as a “Jewish state.” The prevalent Arab and Palestinian demand is to rule out any such recognition, on several valid grounds, such as: The Jewish state concept is not defined, it does not take account of the Palestinian Arab and other non-Jewish Israelis, it does not address the implications of such recognition for the U.N.-acknowledged rights of Palestinian refugees, and it does not have any basis in international law or diplomatic norms related to how states recognize each other.