One thing that stuck out for me in my limited time in Israel were the temperamental and even physical overlaps between Palestinians and Israelis, particularly between Muslims and the Sephardim and Mizrahim (European and American Israelis are a different story). Their hostility with each other are a reflection of their similarly narrow and ideology-driven viewpoints.

The only thing that's certain is that region has been one of the world's most heterogeneous for time immemorial. Any governmental system that supports peace must have that heterogeneity baked into it (not a simple feat, I realize). In Israel, it's basically the opposite.