@Frank Apisa,
You are leaving out one major factor in this equation: the Holocaust. It could seem like an irrelevant old event, but for Jews and Israelis it is as central to everything as say human rights or the economy.
After the 20th century, Israelis will never trust any "international control". Last time international community simply let half of the Jewish population die. So yes, some Arabs that lived in Zefat didn't like the fact of getting new neighbors in the 1930s. I still think this is a minor evil compared to being sent to a concentration camp .
Also you write: " Arabs, and Muslims had lived in relative harmony in that area of hundreds upon hundreds of years…until the state of Israel came into existence. "
Which is technically incorrect. Arab attacks on Jews started before the the state of Israel came into existence.
And I think the situation in the Arab world today makes this point irrelevant. Do you really think the Syrians, the Iraqi's , the Egyptians, the Lybians etc are killing each other because "the state of Israel came into existence. "? If anything, Israel is the most peaceful place there right now.