> My take is that if a 100th of the war budget of Israel had been allocated to building schools and peace propaganda in palestine none of these decades of violence would have happened

The UN has invested around a billion yearly in UNRWA, an agency whose half of budget (twice than what you propose) is supposed to educate Palestinian children for peace, mainly using funds contributed by the west.

UNRWA however has removed the holocaust from its human rights curriculum, has many Hamas members on its payroll, including some teachers who held hostages and regularly talks about Jihad and martyrdom in its curriculum.

So, yeah peace education? that works less when you are under a control of an islamist terror organization or ran by the local population that does not have fully bought to your peace idea yet