Canada is a multicultural, pluralistic country, but it’s also a country whose constitution acknowledges the special collective rights of anglophones, francophones and First Nations peoples. Canada remains a liberal and democratic country despite recognizing the collective rights of those peoples, and despite the fact that it is home to many who do not belong to those groups. Israel too is a country that recognizes the specific right of the Jewish people to national self-determination, and which is nonetheless a liberal country that guarantees rights and protections to its non-Jewish citizens.
Israel is, like Canada, a nation of immigrants and a diverse multicultural nation with citizens who are from or whose descendants are from all over the world. I don’t know what you mean when you say that Israelis have “more self-determination” than Canadians, but if you have a problem with Canada’s diversity and don’t feel like you have enough self-determination, then... move? I don’t know what to tell you. Something tells me though that it doesn’t actually bother you that much. But whatever you mean by Israel having “more self-determination” when you say the definition “require[s] us to agree that Israel is necessary because its citizens need more self-determination than the rest of us” is not what adopting the definition does.
Jewishness is not a racial identity; it’s a religious and national identity, or a religious and ethnic identity, depending on the context. (For example, in the USSR, all citizens had to carry ID cards that noted an individuals nationality. Under nationality, it said Jew. In a North American context, we use ethnicity as a category in part because we have different assumptions about the relation between individual and collective identity than the Soviets did.) Many Jews are Jews by birth but many are also Jews by choice, who converted to the religion. Racial identity doesn’t work like that, and Israel doesn’t define Jewish identity as a racial one (it doesn’t define who a Jew is at all; the Law or Return only defines who is entitled to immigrate into the country as a Jew, which was partially a political compromise made so as not to upset the ultra-Orthodox when the Law was drafted). The people who insist that Jewishness is a racial identity are generally racists.