What we've known anecdotaly for some time is now beginning to be common knowledge: young Jews do not see the Holocaust as an essential part of their Jewish identity. An article from Moment discussing new research is here.
For centuries Jewish identity and cohesion has been an alchemy of the Jewish past and present. Jews in 2008, young or old, don't get a lot of mileage from an emphasis on suffering in the recent past. It is not the experience of most Jews. The challenge is to give people meaning in a world in which all frameworks of meaning are under assault.
For many baby boomers the cornerstones of recent Jewish history are the Holocaust and the 1967 war. These are an important part of their experience and identity. The primary experience of younger Jews is one of domestic stability, tolerance, affluence, and an absence of anti-semitism. With regard to Israel, the formative memory is probably 1982 and Lebanon, which frames a view of Israel as the persecutor.
Basically, young people, like all people, are looking for authentic responses to questions about the meaning of Judaism. "Because our ancestors suffered" has never been enough.