One of my best friends has a whole bunch of Israeli cousins that I'm friendly with when they've visited the states. According to them, a lot of Israeli people have a lot of Palestinian friends and vice versa, especially the younger generations, it's primarily the Israeli government and Hamas that keep this shit going. Most of the average people don't take issue with each other outside of extremists and nationalists on either side, they'd rather just all get along. They say the issue tends to lie with governing authority over holy sites, that Israel is trying to be the big kid on the block in the region, and the Palestinians just want to live in peace with equal rights and to not be treated as substandard citizens on their own land and are rightfully pissed that they keep getting pushed around.