1. The British wanted us to fight, and we all fell for it. They pulled the same trick in Ireland and India (starting wars between rival religious groups in the hopes they would beg the Brits to stay and keep the peace); all they accomplished was getting a lot of people killed, and they lost their Empire anyways.
2. It’s a real estate dispute. The Palestinians are among the least pious Arabs, and most Israelis want anything but a religious state.
3. If you compare it to recent examples of ethnic cleansing and other war crimes (many involving the sorts of things we don’t mention on YWN), it appears the Israelis and Palestinians are actually quite civil. They seem more inclined to annoy each other than to be seriously interested in wiping each other out. Note that there has always been much joint Jewish-Arab economic activity (including joint criminal activites, unlike most wars where the crimianls are loyal patriots who would never help the enemy), and that the Israeli and Palestinian standard of living has been rising steadily for the last 70 years.