The "neighbors" are saddled with a particularly oppressive religion, which still holds to the interpretation of al-Ghazali.

Prior to him, there was coexistence with the Jews/Hebrews, and Baghdad was the center of enlightenment (while Europe was a complete mess). But progress stopped after al-Ghazali, and the "Muslim world" has never recovered. And probably never will until they can remove the shackles of Islam.

Meanwhile, the Jewish religion (as practiced by most Jews) actually encourages questioning and exploration. Which is likely why a disproportionate number of Jews have won Nobel prizes in the sciences.

Religion is the force multiplier in this situation. Both sides say they have claim to the land based on their scriptures. While they adhere to religion, there will never be a resolution to the situation (short of genocide of one side).