And you can’t think of it in terms of a singular “neighbor.”
These conflicts are vastly worsened by collective action problems. There are millions and millions of Israelis and Palestinians who do want to live at peace with their neighbors. However, it only takes a small number of people to upend that prospect - and unless the millions of people have a way to stop the small number of people from doing that, there’s no way for them to force the small number of people to make the compromises.
So, for example, even if we assume arguendo that most Palestinians would be willing to put history behind them, if Hamas doesn’t want to do that, it doesn’t matter. Hamas might be a minority of Palestinians, but they have the guns and the power and don’t have to answer to the majority. Similarly, if we assumed arguendo that most Israelis would be willing to put history behind them, if the right-wing and religious parties don’t want to do that, it doesn’t matter. They might be a minority of Israelis, but the fractured political reality combined with parliamentary system allows them to continue their provocations.
You can’t project solutions to interpersonal conflicts onto groups with millions of people.