I can see many kinds of fiefdoms. Jewish Orthodox fiefdoms would likely attract Muslims and vice versa since they share many similarities regarding modesty and forbidden foods. China town might ban funeral homes, cemeteries and crematoriums. Mormon and Baptist communities might ban alcohol.
I am not advocating what Israel does at the state level to their minorities. I am against ethnic cleansing, oppression and injustice... For example I am against one neighborhood bombing another neighborhood with White Phosphorous.
If a Jewish neighborhood wants to ban cars in their neighborhoods on Saturdays, nobody dies. The by-laws would just be an inconvenience. I am against forcing people out of their homes at gun point because they are the wrong religion.