Aside from the periodic massacres and displacements dating back to Mohammed's time, Islam introduced the splendid ideas that non-Muslims living under Islamic rule:
1) Must never build buildings taller than buildings owned by Muslims.
2) Must always step aside or yield whenever a Muslim approached.
3) May not testify against a Muslim in court. This basically allowed Muslims to do anything they wanted to non-Muslims with impunity.
4) Would suffer death for virtually any crime, real or perceived, committed against a Muslim.
5) Must pay the dhimmi, or religious tax, for being a non-Muslim.
...and so on and so forth, ad nauseatum. It was worse than Jim Crow, although different rulers and different communities enforced these edicts of Mohammed himself to varying degrees depending on how "faithful" they were to Islam.
To describe life under such cruel circumstances as "peaceful coexistence" is to transform the expression into a cruel euphemism.