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Is it really because people feel threatened by their religious theology?..That seems unlikely

Where exactly does the problem lie?

I think the word "envy" might have something to do with it.

And the word "ignorance".

First, a lot of non-Jews think the term "chosen people" mean that the Jews have sort of
egomania...on the contrary, the persecution throughout the millenia would argue that
the word "chosen" would more likely be translated "chosen to be tested" or
"chosen to show people can survive a lot of crap thrown at them".

And, despite often being pushed to the periphery of the societies they were trying to function
in, e.g., forbidden from certain profession...pushed into disliked professions
such as "usury" (know as "finance" today), they earn a lot of envy for surviving
and prospering despite having this sort of persecution.

Finally, some Jews got smart...hence the state of Israel.

This is all just the inexpert opinion of a conservative from a "cultural Christian" background.

In case it is airing on your PBS station, you might find the series "Heritage" about
the history of the Jews interesting.