I think that's a pretty naive view of the situation here and of groups in general. For one thing, it ignores the fact that there is a spectrum of adherence to religious beliefs among both Jews and Palestinians here. I can't speak for Palestinians, but among the Jewish population (80% of the Israeli population), only half are actually religious (41% of the population) and that includes about 4% who could probably be classified as anti-Zionist. The other half (40% of the general population) are secular Jews. That includes the PM of Israel.
Although for many it does play a part, to drop it all on religion just reflects a desire to condemn without really caring to be aware of what's actually going on. I'd put a lot more blame on national pride and government power struggles rather than religion without a question.
Palestinian terror typically occurs in the most peaceful zones of Israeli civilization. There was one attack by some Palestinians kids last year where they stabbed a Palestinian old man (thinking he was Jewish) near the Israeli open market in Jerusalem (I think he was waiting for the train). There's been
numerous stabbings or attempted stabbings in the past years of people on the way to or from
praying at the Western Wall. They aren't attacking violent people -more often than not, they aren't even attacking settlers. They're attacking citizens peacefully going about their business usually far removed from any violence or contentious neighborhoods.
The first thing you need to realize, is that Palestinians (or the ones influenced by Hamas and Fatah's media) view Israelis as a single entity. To the extent that (and I think this was in bad taste) some Haredi Jews (who are typically anti-Zionist to one degree or another) actually circulated a letter in Arabic after a number of them were attacked, asking Palestinians not to attack Haredim since they're anti-Zionist. And its also obvious that Palestinians (and most Muslims apparently - if RF is any indication) see Israelis as a monolithic entity from the propaganda put out by Hamas and friends. So being a friendly Israeli isn't going to net any benefits until the entire country unanimously decides to be friendly.
And of course that's impossible. That would be like expecting the entire Muslim world to become peaceful. Instead, wiser heads understand that among every group there are moderates and extremists. You're not going to blame Egyptian citizens for Isis. There are moderate Muslims out there and there are extremists who become Isis. Its called diversity and it has a good side and a bad side. That's true of the wider world in general and here in Israel and the Palestinian territories specifically.
And on the Palestinian side we have exactly the same thing. If you go to more affluent communities, or basically any community outside Gaza and Hebron, you'll find the majority of Palestinians are just as peaceful as the majority of Israelis, trying to get through the day just like those Israelis in the market. Palestinians (and Palestinians-Israelis) are ubiquitous in Israeli society. You go to any construction site in the country and you hear Arabic. You go to an Israeli hospital and its a 50-50 chance your doctor's name will be Ahmed. The problem is not changing some behavior. There's plenty of groundwork already in place for peace among the citizens on the street.
According to
a poll by the PCPO half of Palestinians living in East Jerusalem would prefer Israeli citizenship. There's even a
growing trend of Arabs choosing to move into Jewish neighborhoods. Never mind places like Abu Ghosh that are already a part of Israel.
In my opinion, the real problem is simply down to politics and the government trying to advance an agenda in its own best interests rather than its peoples'. Selling land to Israelis is
punishable by death in the Palestinian Authority.
Here is a video of the Arab mayor of Nazareth yelling at the head of the Joint Arab List for ruining his city.
“You’ve ruined everything, go to Haifa!
“There wasn’t a single Jew here today. Not even one!”...
"I blame the leaders; they are destroying our future, they are destroying coexistence,” Salem (the mayor) told Army Radio.
I think that's what it does come down to.