At the risk of this becoming political, the country is very stable outside of those two area and arguably relatively stable in those areas when you look over the last 100 years!
It's odd considering Israel's only 63 years old. Last I checked they became a statehood in May of 1948. Regardless, you can't argue that rockets flying into public transportation and all the other jewish/arab conflict tension doesn't exist, because it does and will continue to do so, unless both sides TRY to make an attempt to solve the problem.