A unified and stable middle east would be and would have been a global superpower with the ability to influence independent control over major global trade routes and energy supply.
This is why the Israel is and has been imperative to U.S. foreign policy.
Yet Jews and Muslims lived in relative peace with each other in Jerusalem for long periods of time. They don't have to fight. The fighting mostly comes to them. Anyone claiming it's because the religions must fight is lying or mislead. I don't know which you are, if that's what you're implying.
Less conflict? Maybe, far less? No, the region was always bloody. There was smaller population. I didn't read any statistics that were normalized by population size.
The comment was about the claim that Israel is THE source of instability in the region. Which is false.