Unfortunately this is a major oversimplification. Its more than just being multicultural and progressive. As someone who has spent a good amount of time in Israel, areas of it are actually pretty progressive and multicultural, like Tel Aviv. Gay pride parades, people of many different cultures getting along just fine. Its whats under the surface which is the issue.
Lets consider these two perspectives:
Take your average Israeli. Grows up learning about the various wars with the surrounding Arab states. Knows that most Arabs arent such big fans of Israel, and by extension, Jews in general. Learns about the Holocaust and from that the intrinsic need for the Jewish people to have a home to call their own. They grow up with regular attacks occurring by Palestinians such as the one that happened today. So this breeds a natural suspicion of Palestinians. There are stories of both sides reaching out to help each other, like this story from back in 2015, but they are few and far between. Your average Israeli doesnt see an attack on soldiers in the West Bank as Palestinians defending their land, they see it as terrorists attacking people who keep the terrorists at bay. So this breeds more hostility, and a willingness to keep the boot on the neck of the Palestinians as long as it keeps preventing the more serious attacks. At the same time, the Israeli doesnt understand why the Palestinians cant just stop causing trouble so they can all live in peace. Some see past all the rhetoric of the politicians and actually do want peace though reconciliation. Others just want to see the Palestinians gone. They hate the Palestinians for what they have done, for bringing all this death and destruction. Any pain inflicted on the Palestinians was brought upon themselves for causing trouble in the first place. After all the bloodshed, how can Israel trust the Palestinians ever again? After seeing what happened to Gaza, why should Israel risk a repeat of that in the West Bank?
Now take your average Palestinian. Grows up seeing the heavy hand of Israeli occupation forces, or if in Gaza, the rampant destruction that the Israeli military has wrought. Grows up being taught about the Nakba, which is their term for the 1948 war and the mass exodus of Palestinians (some forced, some willingly) from their lands, turning them into permanent refugees. They see continual Israeli encroachment in the West Bank. The wall, the checkpoints, the concrete barriers and the barbed wire. The world protests, but doesnt actually do anything of substance. A general feeling of hopelessness is only assuaged by token resistance. Whether thats protesting, throwing rocks, attacking soldiers, or launching rockets. Why bother negotiating? They know the Israelis wont budge from their position of strength. Right of return for Palestinians? Forget it. An independent West Bank? Kinda tough with all those settlers there. The list goes on. And the resentment grows. Turns into hatred. Groups like Hamas makes people feel good, like they can still resist Israeli occupation. Even if its futile. Like with the Israelis, some Palestinians do see a brighter future. One where both sides live in peace. But its tough to keep advocating for that when your neighbor gets shot by Israeli security forces while at a protest. Or has their house bulldozed.
So this endless circle of violence continues. Nobody really wants to give more ground in this fight. I think both are going to stick it out until the end. Maybe I'm just jaded but thats how I see this playing out. Unless a miracle happens, like Oslo v2. My hopes for that continually diminish though.
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