I think it's easier to create a single democratic state than try and make a viable state out of a scattering of postage stamp sized parcels of land surrounded by hostile neighbours.
Both sides of the conflict want to wipe each other out, one side often calling for their extermination... battling over religious nonsense like little hills where mythical figures did things... and you think they can be put into a democratic country? LOL
You’re living in a fantasy world where most people are moderates and it’s just a small fringe element on both sides casing troubles.