When a country is initially populated by people who just barely survived a genocidal massacre the likes of which the world had never seen, based entirely on the concept that said people are an "inferior race," those people might have a few issues that might carry over to the next generation. Just a hunch. I don't know.
Anyway, pretty much everyone in the world has been using Jews as scapegoats and the target for all their violence and rage for thousands of years now, so I feel like I ought to cut them some slack, considering the long history of hate and violence their ancestors managed to endure.
I agree that the Palestinians should have their own free state, I just don't think that the creations of such a state should involve antagonism on either side.