Land is the first thing reapportioned after a major war. My grandparent's hometown was part of Austria, Hungary, Czechoslovakia and most recently, Slovakia, due to wars and political upheaval.
The Jews were conquered several times anciently - their cities were destroyed and the people were driven out of their homeland. The country of Israel was formed for them on a tiny slice of land after the last world war. The Arab residents of the land that was given to the Jews had several hundred years of history in that area and were not happy to be made homeless, especially since one of their most sacred sites (the Temple Mount, where Mohammad was said to have ascended into heaven) was now the property of another country. Unfortunately, the Temple Mount is also the location of the ancient Temple of Solomon in Jerusalem, which makes it the most revered site for the Jews as well.
Israel has agreed to make access and ownership of the Temple Mount equal between the Arabs and the Jews, but it is not enough and never will be enough. The Palestinians want their own country, and they feel their homeland was stolen. Although the ordinary citizens of the Palestinians are happy to coexist peacefully with the Israelis, the military extremists of the Palestinians, Hamas, will never be satisfied with anything but the complete destruction of Israel.
Both sides feel they are in the right. Interestingly, Iraq and Iran are both about 20 times the size of Israel and also would be happy to see it obliterated, yet neither will give one square mile to the Palestinians to form their own state.
The Palestinians cheer as Hamas waves a stick in the Israelis' face. The problem with that is, in the end, the stick ends up in the Palestinians' ass.
