The state of Israel was parachuted into Palestinian territory long after most of the Jewish diaspora had left for greener pastures in Europe and the USA, which quite understandably upset the Palestinian people (presumably including the remaining Jews who had enjoyed periods of peaceful co-existence with the majority Arab population). They have been understandably further upset by the flood of Jewish immigration back into the newly-created "nation" and its forcible and illegal expansion.
Resistance from the Palestinians (some of it ill-considered and frankly stupid) has been met with disproportionate and overwhelming response from Netanyahu & Co with the aid of their US sponsors. The Palestinians have their sponsors too, of course, but the first real punch in this fight was probably thrown in 1948 when the state of Israel proclaimed itself.
Many religious groups can peacefully co-exist without the need for the creation of sectarian states, which reinforce differences and create tensions. Israel didn't exist for the best part of three millennia, and if there is any compelling reason for its existence now we may as well set up states for the Scientologists and the Pastafarians as well.