I agree that we should remember historical traumas, but I don't agree they suffice to explain international politics.
Take the Greeks (that's my people! Us!) and the Turkish. I guess people in the West don't remember this but the Israelis are not the only people in the Middle East who have a word that means "disaster" (Shoah, for the Israelis; Καταστροφή- Catastrophe for us), that when anyone says it everyone knows exactly which disaster is spoken of. They are not the only people who lost the land their ancestors inhabited for thousands of years (Ionia, for us Greeks), who lost their greatest city (Constantinople, the City), who lost their greatest temple that was turned into a Mosque (the Hagia Sophia). Us, Greeks, too, have suffered these ignominies at the hand of the Turkish. Our common history with the Turkish is one of war, destruction, violence and blood. So much blood.
Genocide? https://en.wikipedia.org/wiki/Greek_genocide Check. Ethnic cleansing? Check. Death marches through the deserts? Check, check, check.
And yet, since the Catastrophe, in 1922, we have been at peace with the Turkish, even through serious hot episodes in the Mediterrannean, like Cyprus. That's 100 years of peace, after 1500 years of history of war.
It can be done. The trauma can be overcome, if both sides agree to it. To quote none other than Moshe Dayan: if you want to make peace you talk to your enemies, not your friends.
I wonder how Greek-Turkish relations would look like if both nations were stuck in a relatively small piece of land - say, the size of the European part of Turkey. And with Constantinople/Istanbul ethnically mixed in about 50:50 ratio.
It is a lot easier to conclude peace if both adversaries have a plenty of "their own" land to live on and can sorta-kinda ignore each other while doing so.