So what you're saying is that the only time they lived peacefully side by side was around 500 AD. Don't know if this was sarcasm or not because the Arabs were barely out of Medina at this point.Arabs never allowed the Jews to live peacefully among them for the past 1400 years. That's why Jews were expelled from most Arabian countries. Prior to this period, I agree that they did they did live peacefully among each other.
Jews have been living in Iraq, Iran and all over the middle east for 100s of years. The example I gave of Spain being a good example where Jews held high positions in society. Obviously they were both turfed out by Christians.
I grant you Jews were expelled after the creation of the state of Israel but imagine that might have had something to do with Palestinians being forced at gunpoint from their homes.