If you read one book on the Palestinian-Israeli conflict, read this one. You get a good dose of the politics and history of the past and present, but woven through it all is the humanity of both Palestinians and Israelis.
Israeli Jews and Palestinian Muslims and Christians don't have to intermarry and beget children, but it might help if they interacted on a one-to-one basis and sat down over a cup of tea and honestly talked.
Israel's siege is achieving the exact opposite of what it hoped. The tougher life gets, the more spiritual Gazans become, thus driving the people toward religion -- an area Hamas knows a lot about managing.