Why is Israel a happy place, more so then its neighbors?

Because it is a economically and politically stable country that isn't plagued by coups or revolts. Contrary to what the media tells you, the Israeli-Palestinian conflict is not like the Syrian Civil war and is low-intensity with the occasional flare ups like last summer. Israelis built up this nation from scratch and achieved what many countries only achieved in hundreds of years through courage and determination. They know that the reason the Arab world hates Israel is mostly due to jealousy and that is why they don't take it to heart.

It's stable economically and politically.

But not to the level of boredom and stagnation like the Gulf countries.

Jews in general are used to life threatening situation, and appreciate all the more miracles like our flourishing home which we've returned to after almost 2,000 years in exile.

Cuz the people are peaceful.