Seriously, is there a single Islamic State that has exterminated the Jews? Jews have lived in Islamic countries for over a thousand years and that never happened
Islam has very little to do with this scenario, but, as Minchandre noted, there is indeed a significant record of events of deadly violence against Jews in Muslim lands, including Medieval times (although I am not aware of any state-sanctioned mass expulsion on a major scale). It is absolutely correct to say that Muslim-majority lands offered more tolerance and safety to Jews, among others, than it was the case in Christian areas,
on average.
But the comparison tells more about how nasty Christian anti-jewish prejudice could be, rather than displaying any exceptional Muslim nicety.
(As an aside, it is somewhat remarkable that the extremely harsh treatment suffered by the Jews of Medina according to canonical narratives of the life of the Prophet was never, to my knowledge, to considered to be a valid precedent sanctioning similar action by other Muslim governments in pre-modern times).
This, however, has no import on what would happen in the very unlikely (say, bordering ASB) event of a catastrophic collapse of Israel in 1967.
On this point, I agree that large-scale genocide is unlikely, but it would be pretty nasty for everyone involved. I also do not see rapid relocation of the bulk of Israeli Jewish population. It is even possible that they'd be allowed to stay, were they chose to do so (which I'd suppose most rather won't, after what is almost certainly a bloody and messy immediate aftermath of the war).
By the way, no Arab state would consider things like imposing
dhimma upon Israeli Jews here. We are not talking about Medieval sultanates here (ironically, it would be marginally less removed from absurdity nowadays).