I guess my buddy is a heretic, then. His teacher hasn't told him to drop his Christian friends, either. He took the Islam (I think that's what it's called) two (three?) years ago.

The unbelievers of the People of the Book
and the idolaters shall be in the Fire of Hell
therein dwelling for ever;
those are the worst of creatures.

That does not seem to imply all Jews and Christians will dwell in the Fire of Hell forever, just that Jewish and Christian unbelievers are as bad as idolaters.

O believers, take not as your friends those
of them, who were given the Book before you,
and the unbelievers, who take your religion
in mockery and as a sport

Ok. Sounds bad... but it also sounds like a warning not to befriend "those who were given the Book before you", if they are going to try and persuade you out of following Mohammed. That's what that sounds like, to me, anyway.

O believers, take not Jews and Christians
as friends; they are friends of each other.
Whoso of you makes them his friends
is one of them

Fine, again - but there is still no hostility, IMO. Nothing to prevent peaceful coexistence.

The end result is that the Muslim faith tells it's followers to tolerate Christians and Jews as second class citizens, as long as they do nothing to anger the Muslims and pay their heavy taxes (jizya) on time.

Heh. Still, there's a basis for some form of coexistence there.

As I recall, before Israel was re-created by the West after WWII, Jews and Christians were freely permitted to make the pilgrimmage to the holy places, no? Somehow, I don't think the Christians would have done the same - nor do I see any better in Jerusalem in the present. Aren't the Muslims there 'second class citizens'? In the 'occupied territories', aren't people being actively displaced in favor of Jews? Forced from thier homes?

I have a feeling that any lasting peace is likely to be more rooted in Muslim tolerance rather than Christian brotherly love or Jewish compromise.