It is folly to live with your enemies. Eventually, one will purge the other, because they are implacable enemies with nothing in common.
Jewish Fabianism and a belief in multiculturalism keeps the two sides in constant friction.
Close to 20% of the population of Israel is Arab with 16% being Muslim. They are growing faster than the population as a whole. Israel is bound to have more problems in the future as this segment increases in size.