UNRWA perpetuates conflict by: removing any need for Palestinians to compromise because they're fed, educated and receive medical care from the UN. Families in Gaza, for example, have many children, despite poor economic conditions, in large part because their choice is heavily subsidized by the UN - and 20+% of that money comes from the US. The number of young keeps the conflict going. If not for UNRWA, the Palestinians would have been absorbed into the world, like all other refugees anywhere, and there would have been a pragmatic real solution to the warfare.
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from the article: As UNRWA turns 60, it asks for more funding for Palestinian refugees