So this conflict is seated in deep deep hatred. Good versus evil.
Only God can change this fact and bring any other solution. The Bible says there will be a huge battle and we can see it is near. Read the Bible. The story is there and it is inevitable.
We can choose sides... or have our side chosen for us by our unbelief.
How true your words. Consider this:
"The Jewish (and later Christian) alternative to pagan social order is the Covenant: God in his love assigns rights to every human being, and establishes laws for the protection of the weak and helpless. Covenant is a concept alien to Islam, for by definition a God of covenants places a limit on his own power and enters into a partnership with a human society. The all-transcendent Allah does not stoop to make covenants with mere humans; not so YHWH of the Hebrews. No longer can the Roman paterfamilias command the death of his own children in the little empire of his home; the covenant protects every member of society directly. Because the covenant is expressed through laws, and laws require reasoning, the God of covenants must be a God of reason."
The quote above was taken from an essay by the enigmatic Spenger, and is well worth reading:
http://www.atimes.com/atimes/Middle_East/LH24Ak01.html