I think at least part of the problem is that many people think it's worth paying the astronomically high price so that there is a Jewish state in the world, as a sort of hedge against a future Holocaust anywhere else. Once the state is non-Jewish, there's no protection against how it might change demographically and democratically in the future. I think the thought is that although it may guarantee peace for a generation or two, the only way to guarantee survival of the Jews in the really long run is to have a Jewish state.