In Europe, during the Middle Ages, Jews were, to a large extent, excluded from owning land or being farmers. They made their livings mostly from trading, moneylending, and skilled crafts -- trades where stupid people are at a big disadvantage. The smart ones were able to keep their families fed, the stupid ones died out. Evolution in action.
Yes, but culturally, it began long before then.
From the 11th Century BC to 722 BC, when Israel fell, though the Kingdom of Judah and several city states continued. They finally fell in 586 BC.
The Hebrews adopted some of the better Philistine and Phoenician ideas, and several Biblical tales are clearly based on mythology outside of their region.
In any event through the various diaspora, the Jews kept up the traditions, as they do today. External pressures may certainly have augmented it, but it was already there.