I disagree with dania's comment. Conflicts are too often about getting what you need or want and not often about how you can work together. If anyone truely wants peace, both sides are going to have to eventually forgive the horrible events of the past and cooperate and cooexist. This isn't easy, but it is essential.
I think this is a good idea in that it shows both sides that the "others" are not so different. If that is the case, why should you hate your neighbors with such passion and wish to not grant them freedom and equality? It makes people question their "natural" reactions and responses. Is it really justified or is it the historical status quo?

Once people reject the way they see themselves and the other side, the two groups have the opportunity to learn from the conflict and rebuild a relationship.