Okay Cable, I didn't know if that first question was rhetorical or not, but if not, here's my take on the situation as I understand it (please someone feel free to correct me if I'm wrong.)
The fight is basically between the State of Israel and the Palestinians. Palestine was an area declared by the British in 1916 which is basically comprised nowadays of Jordan, "West Bank" and Israel.
Then in 1923, the British shoved all the Jewish people in Palestine to the West side of the Jordan river, thereby cutting off about 75% of Palestine from them. However the non-Jewish, "the Palestian Arabs", people still on the West side of the Jordan weren't too thrilled about this, and decided to force the Jews out altogether.
In May, 1948, the State of Israel was created, the new homeland for the Palestian Jews who had been forced over to the West Bank. The next day they were attacked by Egypt, Jordan, Syria, Lebanon, Saudi Arabia, Iraq and Yemen. 19 months later, the war was over, Israel had driven the invaders out, but lost 1% of their entire population. They also lost a small part of their land, as Jordan was expanded over the river, onto what is now known as "West Bank", basically right next to Israel, but with each State filled with people of very different viewpoints.
Now Israel is occasionally attacked by someone (often suicide bombers) from West Bank, Syria and a whole bunch other countries, and retaliates, or vice-versa. So you have an on-going conflict based entirely on religious belief, that the British kind of started and then ran away from.
This can only end, Cable, if the Arab Palestinians completely over-run Israel, and wipe out all the Jews in the Jewish homeland of Israel. And as one George Walker Bush has said - "Israel's got a right to defend herself; Israel must not feel constrained in terms of defending the homeland."
So it's not a battle that can be one by one side crushing the other, instead it must be a peace found between the warring factions. And that's very, VERY hard.
So endeth the history lesson, apologies for any errors I made in this.