For people saying 'it's Israel or Palestine, depending on your politics' - that really, really isn't how it works.
Bethlehem is in the West Bank. Israel doesn't claim it is part of Israel. The West Bank is under military occupation by Israel- everyone accepts this- but what that means depends where you are: in Bethlehem, the Palestinian authority run the local police, schools, everything. The Israeli army are a military presence but Israel doesn't claim that territory. They don't want to: if that many Palestinians became citizens of Israel and had voting rights it could ultimately lead to a Jewish minority.
Nazereth is in modern-day Israel, but has a predominantly Palestinian population. The difference here is the Palestinians are citizens of Israel, and the services, roads, etc etc are provided by Israel. You have to go through significant checkpoints to get to the West Bank.
I've been to Bethlehem: I find it strange how much our media fails to actually get across the fairly simple facts of that conflict and what it means for people day-to-day.
Related: I too think it's pretty clear there was a historical figure called Jesus of Nazareth. Whether he was a snake oil salesmen, a cult leader, one of many prophets (as the Muslims believe) or the son of god (as the Christians do) is a matter of debate, but he was a real person, not an myth.