The Golan Heights are very important, strategically, to the defense of Israel. So, yes, they are reluctant to relinquish them to a band of thugs who have sworn themselves to the destruction of Israel.
The religious part of all of this is that there can't be just one big happy melting pot of Palestinians and Israelis living together. There have to be "Israeli Settlements" and "Palestinian Settlements." This, apart from the Palestinian demands for their own state. Actually, it's more than religious, and that's why we don't get it. We see it from American eyes, where we are American first, and Protestant, Catholic, Jewish, Muslim, Hindu, Agnostic, Atheist, second. They don't.
No, it's not simple.
