well, even further. Go to AD 70 (First Roman-Jewish War) when Hadrian destroyed the first (?) temple and the Jews exiled from Judea.
...but this fact will not end the violence in that region. Both sides have a historical claim on this land and are willing to defend or fight for their rights.
That was the second temple. The first was destroyed by the Babylonians about 600 years before that (on the exact same Jewish calendar date...)
Anyway, this dispute is not about historical claims, it is very much about present day claims. Even if one side has a better claim than the other it will not change a thing. Historical justice is a matter for academic debate, but does not exist in reality.
edit: btw the Israelis dont recognise the Palestinian's right to their own state either.
This is completely not true.
From the Israeli side, the dispute is about the exact borders and even that include less than 5% of the area that was not part of Israel before june 1967. The gaza strip in particular is considered by a VAST majority as not a part of Israel. This is why Israel was able to pull out and evacuate 8000 settles out of their homes. Without a very wide support base, this would have been politically impossible.