When The Architect was frustrated with trying to configure a Matrix that the humans would accept, he turned to a program whose primary function was to study the human nature. From there on, the fate of everything was in her hands. She invented a little game for one person to reset the Matrix every couple of decades, just so she can watch. She would tweak each human's personality so the show would be different every time, just to fulfill her amusement.
Then she got bored, and introduced a Cold War Truce.
Everyone's been playing into her goals, her plans, as she strived for more entertainment. Every "choice" someone made was all cleverly and insidiously designed by her, using complicated sequences of cause and effect, reaction chain reactions, and putting bull**** in people's heads to make it seem as if this goal or that campaign was all their idea.
She wants to be entertained, so she causes strife between Morpheus and the Machines over the remains of the One, causing him to create light shows with his code bombs, making her giggle with glee, and causing a chain reaction that led to his dramatic death. This sparked a war between Niobe and the Merovingian, her hated enemy.
She put the fear of deletion inside The General's head, so he strives to create a new purpose for his army. Now there's all-out war hidden behind a flimsy Truce, and it's all by her doing.
The One....oh, the One. Another one of her toys designed to give the Machines a headache. There is no 1% chance of bluepills awakening - she wakes them herself and uses them as a way to anger the Machines, causing her happiness.
She tells you what to do, and you do it, because you believe that she is right. She's always right because she knows everything. Or does she? She might know everything because everything has happened as a reaction to her own choices!
She doesn't make predictions, she creates actions and choices. That's how she knows it all, because it's all a part of her plot. All this war, this senseless fighting and attempting to one-up the other, it's all her fault.
The only true way to achieve peace is to destroy her. Delete the Oracle! Then her plans will all fall apart, and all this war can eventually settle and dissipate into peace.
She hides her evil core under a soft, old woman who offers people candy and cookies to give them a false sense of security and happiness around her, like a siren. A ******* Siren. Well you know what? You can take your cookie and shove it.
~This is a theory proposed over the causes of all the fighting within the Matrix. Flaming and spam posts need not apply, for this is only an opinion, although firey arguments are welcome. Don't think you'll convince me otherwise, though. 
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