I think that Tim's point was precisely to get to some non touristic-only (i.e. often unreal) destination, to understand better the life of local inhabitants and the conflict. This is not part of Wikimania, obviously, but would be an interesting possibility (e.g. more than beach, IMHO).
Maybe Neve Shalom ( http://en.wikipedia.org/wiki/Neve_Shalom_%E2%80%93_W%C4%81%C4%A7at_as-Sal%C4...) could be a good (and peaceful) experience. I don't know Haifa, but maybe also there there are groups\location\associations worth a visit. Personally, I like very much the idea of a Wikimania explicitely aimed to a ''peaceful message'' (whatever this could mean). But still I don't want to force the WM Israel team to change the program, if this was not what they defined.
Aubrey