The Muslim Arab world still does not accept the concept of a Jewish State of any size or shape in the Middle East. Even where you see some accommodation with Israel it is only for the short term in the minds of authentic Muslims.
Jews do demand the right to exist, and to exist as equals, on the Land where they have existed and belonged continuously for more than three thousand years albeit in small numbers at times.
Soon after the UN divided Britain’s Palestine Mandate (5/14/1948) began Israel’s War of Independence as Arab Armies from five states invaded the area that had been partitioned to Israel . The invader armies were intent upon ethnically cleansing the outnumbered Jews and turning the entire mandate ( the Israeli half and the Arab half) over to their brother Arabs, but despite very heavy casualties the Israelis prevailed in that bloody war . When the war ended Jews were ethnically cleansed from Gaza, the West Bank, and East Jerusalem, and in the years that followed, they were ethnically cleansed from the rest of the Muslim Arab world.
These days many claim that the Muslim’s conflict with Israel is about “occupation” and “settlements” in the West Bank ( residual of the 1967 War ) , but they miss the point . Take a look at what Jews see. Unfortunately they see what they’ve seen off and on for nearly 1400 years, i.e. Islamists killing or enslaving ( dhimmitude) Christians and other minorities in the region , i.e. cleansing others in the name of their god . The targeted groups existed in the Middle East for hundreds if not thousands of years before the Muslim’s Prophet Mohammed arrived on the scene and in many cases these are their last vestiges. Beyond that the Jews see Muslims targeting other Muslims ( so called apostates) who do not abide in their particular brand of so called authentic Islam.
So just what is the Muslim Arab’s real grievance? Well the real Muslim Arab grievance against the Jews is that they exist at all. The Persian (Iran) Muslims share their grievance, and if you would like to know the source of all their grievances read the Quran ( Medina Phase Verses ) and the Hadiths where you will find that such grievances exist against anyone who does not share their heinous ideology ( masquerading as a peaceful religion), not only Jews.