While I think that the "appartheid" calls are tiresome and historically inaccurate in any case, this is one of the major reasons I want a 2SS- I don't want to live in a country where we have to resort to questionable tactics to keep our majority. It's not just wrong- it's a barrel of gunpowder waiting to explode, especially if the Palestinians grow faster than the Jews (which isn't a guarantee, but still). The 7.4-5 demographics are bad and I don't expect them to substantially shift in favour of the Jews in the next decades. So in essence, we need to divorce the Palestinians. It's practically an existential need for the Jewish, Democratic State.
In addition, the demographic development in Jewish Israeli society alone will already not exactly lead to an improvement of the position of those Israelis who both value freedom and, at the same time, are economically productive in a meaningful sense. In a state where Jews make up only 60% of the inhabitants in the first place, the share of non-haredi Jews will be reduced to perhaps one third of society, which will lead to a decreasingly free climate, brain drain, and a push towards theocracy -- neither of which are positive things.
And yet I see increasingly less chance that future can be avoided. It's one of the two main reasons I believe that the State of Israel will eventually collapse, tho not in my lifetime, and probably not in the lifetime of anyone on this forum.