There will never be peace in the Middle East. Not so long as you have a proxy war between the West and radical Islam. On one side you have religious ideologues from Iran and Saudi Arabia who have a perverted view of what "jihad" is really about. Instead of thinking "jihad" is a war against the imperfections in one own's life and soul, they believe it is about forcing their own twisted ideas upon everyone else and fighting the West and secular society.
There is so much hate, so much spin, and so many people who stand to benefit from perpetual conflict. Just going along with the spin, it is easier than thinking for yourself. In the US, we idolize those who die for "patriotism" but then demonize anyone who has ideas that opposes the status quo. We are a world addicted to hate, and to the wars that follow. It is easier to demonize and to hate, than it is to study, understand, and negotiate.
I fully believe that progressive and moderate Jews, Christians and Muslims could all live together in peace if it wasn't for the extremists and their backers. Here in America, you have some fundamentalist "Christians" and their resources that support hardline interests in Israel in an effort they believe will trigger the "Final Battle" and the coming of Christ. So yes, Israel is a proxy war with two fanatical alliances facing off, well stocked with money, weapons and support from parties all over who have a vested interest in ensuring the region stays right at the boiling point. The moderates want no part of this, neither do the progressives.
Jerusalem and the Temple Mount is the holiest of places for three religions. Why can't we have a religious center there that is respectfully shared by all three? All three believe in the same God, they just believe in different ways of worshiping God. Don't they somehow think that same God would prefer that they take care of their fellow man instead of pointing weapons at each other? This why I really dislike organized religion. I am quite sure that Yahweh, Jesus or Allah, if they were to return to Earth, would be truly furious with those who claim to be their most devout followers.