BETHLEHEM, West Bank — A dozen Palestinian Muslim men gathered after midnight at an isolated farm house this week to indulge in a new delight. They were going to watch a soap opera about Jews. “Hush, hush. It’s starting!” someone said. The group settled down, sipped fresh lemonade, nibbled sweets, sucked on water pipes and then cranked up the volume for the opening credits of “Haret al-Yahud,” or “The Jewish Quarter.” The steamy Egyptian soap tells a Romeo and Juliet tale of a beautiful daughter of a well-to-do Jewish merchant and a dashing Muslim army commander falling in and out...