The first scrolls may have been written thousands of years ago but they lay hidden for a long time after, it was only when David united the tribes that the Jews rediscovered fragments of them, which made the reforms of King Hezekiah possible. Although even then it was only when the Jews were exiled to Babylon that anything recognizable to modern Judaism emerged. It was only the shock of being separated from the temple that led to the Jews placing more emphasis on studying the Tanakh and it was during their exile in Babylon that they began to observe the sabbath and their other customs that allowed them to keep their identity.
Well it was a pretty effective method of dealing with the prophetic leaders of the many cults that were in the area at the time. It was also pretty effective in dealing with Christianity in Judea itself, martyrdom didn't do much for Jesus there. The real question is why Christianity appealed so much to the Jewish diaspora.
Well yes, four of Islam's five major prophets are Biblical characters. Although this doesn't mean you should get too hopeful about the inter-faith possibilities, the Muslim understanding of the Bible is very different to that of Jews and Christians.
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