I'm glad you see.
Hassidic Jews never tried to fit in in any way. Those who were less religious and more liberal did try, but they were sifted out whenever a population wanted to "purify" itself. I'm not sure why it's so common to believe that Jews' ethnicity has been watered down. There's an unspoken rule that Jews only marry Jews and outsiders are always discouraged from converting to Judaism. They haven't mixed that much.
This rule is common to all conservative, traditional societies. Many Indians who move here seek to arrange marriage for their children with someone from their homeland. Same thing for people from all over USSR, and if they don't seek in the homeland they at least marry someone from another former USSR member. Same for Chinese and Japanese, etc. The Britons are more liberal, but they have little choice left.
Yes, fortunately the "problem" with Muslims has never been as extreme, not until immigrants started moving from war torn countries and were demonised for their beliefs.
In fact, Muslims have been emigrating for 1400 years all over the world, while problems with immigrants are a recent and very much a western issue. Probably because of the lack of notions of exclusivity in Islam.
Also, I would say Jewish assimilation depended on the culture they went to. They assimilated very well in China and India for instance, probably due to a culture of inclusiveness.
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