Hey, you might have read, last few days, about g.ho.st, a well-regarded effort to be a Web-based desktop, serious technology with real funding. It's a joint effort by Israelis and Palestinians, featured at the D conference as well as recent articles by NY Times and AP.
Some of the same folks are also behind MEET, "Middle East Education through Technology". They're training high-school students from Palestine and Israel to do serious software work. I visited them a coupla months ago, saw some of their work, and was very impressed. They're learning Java as a first language, which ain't easy, but involves good programming habits from the beginning.
All of this is a big deal, indirectly helping all to good jobs and eventual peace.