Palestinians and Jews may look alike to us, but they are separated from each other by thouands of years of ill-will, and saying they look similar does not make them any more able to live next door to each other in peace.
Most countries are racially diverse, but not all countries are tolerant of other religions or ethnicities, unfortunately. You aren't tolerant yourself, so are hardly in a position to expect other people to be so.
If you want Israelis to be more tolerant towards others - perhaps start by being more tolerant of Israelis.
Israeli Arabs already do live fairly peacefully with Jews in Israel, in spite of the oppression they face. So, I don't think it's such a difficult thing, if the Jews are convinced to have an interest in doing it.
Christians get along okay with the Jews around the world, in spite of even longer length of time of hostilities and in spite of Christians having more reason to hate Jews than Muslims have to hate Jews.
You say I'm not tolerant, which just shows that you don't understand the meaning of the word. I think Jews and Palestinians should have one state, with equality under the law for all. You don't tolerate things you like, you tolerate things you don't like. I'm not boasting, as I don't think tolerance is such a virtue. I'm more tolerant than God, which isn't to say I'm better than God in any way. God has repeatedly punished the Jews, whom he has damned. He, not me.