Muslims can and do live in secular states - from a religious standpoint, they're just not supposed to. To follow the example of the prophet, it is has long been judged preferable for a Muslim to go into exile in order to live in a community of believers than to remain in a land of disbelief. Obviously, things have changed since the seventh century, but the ideal remains. The phenomenon of mass Muslim migration to non-Muslim countries, knowing in advance that they will be ruled by and large by non-Muslims, is a relatively new phenomenon in the history of the ummah.