"The Jews are mentioned in the Quran and Traditions under the names of yahûdî, pl. yahûd, and banû isrâ.îl, 'Children of Israel'. No distinction is made between Jews and Isrealites. They are acknowledged to be the people in possession of a divine book, and are called 'ahlu-l kitâb', or 'people of the book'.
Musa (Moses) is their special law-giver, Ibrâhîm (Abraham) (not being a Jew, but a ' hanîf muslim '); they are a people highly favoured of God, but are said to have perverted the meaning of the Scripture, and to have called Ezra 'the Son of God'. They have an intense hatred of all true Muslims; and as a punishment of their sins, some of them in times past had been changed into apes and swine and others will have their hands tied to their necks and be cast into the Fire at the Day of Judgement." Dictionary of Islam
This does not contradict to treat the Jews well, as long as they do not fight against Islam and the Muslims. Nearly all the prophets from the Old Testament (Torah) are mentioned by name in the Quran or are referred to in the Traditions and commentaries. This is so because Islam was not a NEW religion but a confirmation and verification (1*) of the dîn-ul fitra, the eternal message sent down by God to man during the course of time. What is new is its purity, authenticity together with its forms and rites.
Islam incorporates all that Judaism and Christianity and other divinely revealed religions treasure. When Islam was established on the earth the old religions became obsolete.
It has always been the intent of Jews and Christians to deny the Prophet Muhammad (Salla-LLahu 'aleihi wa sallam) and his message of peace and happiness, because of their pride and because it was more convenient to follow their fathers' ways, no matter how deviated their religion had become. (2*)
Concerning the Jews' obstinacy to accept the message of islam, the first couple of verses in Quran-chapter (sura al-baqara 2) deal with this question. For example: (3*)
Concerning the Jews of today in the Palestine / Israel, the land belongs to those who live in peace with their neighbours and do not behave arrogantly. (4*)
(1*:) Quranreferens: sura an-nisâ (4), verse 47: "O you who have been given the Book! believe that which We have revealed, verifying what you have, before We alter faces then turn them on their backs, or curse them as We cursed the violaters of the Sabbath, and the command of Allah shall be executed."
(2*:) Quranreferens: sura al-baqara (2), verse 170: "And when it is said to them, 'Follow that which ALLAH has sent down, they say, 'Nay, we will follow that wherein we found our fathers.'What ! even if their fathers had no sense at all and followed not the right path."
(3*:) Quranreferens: sura al-baqara (2), verse 41: "O Children of Israel ! remember MY favours which I bestowed upon you, and fulfill your covenant with ME, I will fulfill MY covenant with you, and ME alone should you fear."
(4*:) Quranreferens: sura al-'arâf (7), verse 128: Musa said to his people: Ask help from Allah and be patient; surely the land is Allah's; He causes such of His servants to inherit it as He pleases, and the end is for those who guard (against evil).