The only thing I'd add is "not particularity nice to the Muslims living there" is putting it mildly.

Because there's always tension, Israel takes its security very seriously. Unlike most countries, who put a token effort into security most of the time, Israel really is an armed fortress. That makes it very easy for someone with an itchy trigger finger to shoot someone who didnt deserve shooting. Even with the best will in the world, it would happen from time to time.

That, of course, makes the Palestinians very angry. An angry population poses more of a threat, and is more likely to do something genuinely aggressive. The Israeli security is thus tightened further, and their soldiers get even itchier trigger fingers and around and around we go.

It doesn't take long before everyone involved has a personal grudge for one reason or another, and things can get really vicious.