Question about Quran translation (Verse about Jews and Christians)?

OK, so reading through an article (by Sheikh Imran Hosein) on his website, the Sheikh makes a comment on the verse and the defective translation about verse 54 of Surah al-Maidah comment on the believers relationship between the Jews and Christians. The Abdullah Yusuf Ali translation states: “Oh ye who believe!... show more OK, so reading through an article (by Sheikh Imran Hosein) on his website, the Sheikh makes a comment on the verse and the defective translation about verse 54 of Surah al-Maidah comment on the believers relationship between the Jews and Christians. The Abdullah Yusuf Ali translation states:

“Oh ye who believe! Take not the Jews and the Christians for your friends and protectors: They are but friends and protectors to each other. And he amongst you that turns to them (for friendship) is of them. Verily God guideth not a people unjust.”

and taken from the Muhammad Asad translation, the verse states

“O you who have attained to faith! Do not take the Jews and the Christians for your allies: they are but allies of each other – and whoever of you allies himself with them becomes, verily, one of them; behold, God does not guide such evildoers.”

The Sheikh later goes on to detail an error in translation and he says:

"The original Arabic text of the verse does not state: “they are but friends and protectors to each other” (Yusuf Ali), or “they are but allies of each other” (Asad). What the verse actually states is that “when Christians and Jews become friends and allies of each other then Muslims are prohibited from maintaining friendly relations or becoming allies with such Christians and such Jews (not all Christians and all Jews)”."

I see now that the verse does not state not to take Christian and Jews as Wali, it states do not take as Wali, Christians and Jews who have taken each other as Wali, for example it is not against Islam for you to befriend the Ahl al-Kitaab, rather it is mentioned that when the Jews and Christians will be friends (remember to consider the enmity between these two groups of people throughout time) we should not take them as wali.

My question is, is there anywhere else (any translations, other Scholarly opinions) that support this interpretation of the verse?

And if this interpretation is credible, is it describing the current situation, ie the friendly alliance between the Jewish state of Israel and predominantly Christian west?
Update: Edit: @ Y!A Moderators....Please direct me to a racist comment. Thanks
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