I think it would be unfair to say that all Mislims hate Israel any more than to say all Israelis hate Muslims. Remember Islam is a religion with believers world wide. The historical conflict has been between the Arabs and the Jews.
Their differences go back to biblical times when brothers Isaac and Ishmael went their separate ways. The current issue started in 1917 when the Ottoman Empire was broken up and the League of Nations gave Britan the responsibility of drawing the borders for all of the Arab states.
Foreign Minister Balfor transferred all of the land except Palestine. He considered the jews to be a problem in Europe and witheld the land in Palestine as a jewish "homelend." Between then and 1947, there was some migration of European Jews and fighting began between the migrant jews and the Palestinian Arabs.
In 1947 the newly formed United Nations' developed a plan that divided the land in half to set up two independant states. They were intended to be Palestine and Israel but war broke out before the plan was implemented and it ended with the jews in control of about 65 percent of the land. In 1956 another war broke out and the jews had about 75 percent when that conflict was over.
Since then, generations of Palestinians have lived their lives in refugee camps. To them the jews are occupying their homeland. Unable to win it back by conventional military means, they adopted a strategy of using terrorist tactics.
Today, most Arabs see the injustice for the Palestinians and consider a Palestinian homeland as a minimal step toward normalization while the Israelis use the terrorism being launched against them as a reason to build walls, settlements and a huge military arsenal.