"I have a question for you. What is the deal with the wolf and lamb dwelling together in Isaiah 11 & 65? I know it is not literal, but what is the significance of this picture of animals at peace?"

Isaiah 60:12-14  For the nation and kingdom that will not serve thee shall perish; yea, those nations shall be utterly wasted. {13} The glory of Lebanon shall come unto thee, the fir tree, the pine tree, and the box together, to beautify the place of my sanctuary; and I will make the place of my feet glorious. {14} The sons also of them that afflicted thee shall come bending unto thee; and all they that despised thee shall bow themselves down at the soles of thy feet; and they shall call thee, The city of the LORD, The Zion of the Holy One of Israel.
Isaiah 61:3 To appoint unto them that mourn in Zion, to give unto them beauty for ashes, the oil of joy for mourning, the garment of praise for the spirit of heaviness; that they might be called trees of righteousness, the planting of the LORD, that he might be glorified.

Psalm 65:7 Which stilleth the noise of the seas, the noise of their waves, and the tumult of the people.
Jeremiah 51:42 The sea is come up upon Babylon: she is covered with the multitude of the waves thereof.
Ezekiel 26:3 Therefore thus saith the Lord GOD; Behold, I am against thee, O Tyrus, and will cause many nations to come up against thee, as the sea causeth his waves to come up.
Zechariah 10:11 And he shall pass through the sea with affliction, and shall smite the waves in the sea, and all the deeps of the river shall dry up: and the pride of Assyria shall be brought down, and the sceptre of Egypt shall depart away.
Luke 21:25 And there shall be signs in the sun, and in the moon, and in the stars; and upon the earth distress of nations, with perplexity; the sea and the waves roaring;

Leviticus 11:2-3 Speak unto the children of Israel, saying, These are the beasts which ye shall eat among all the beasts that are on the earth. {3} Whatsoever parteth the hoof, and is clovenfooted, and cheweth the cud, among the beasts, that shall ye eat.

Acts 10:11-13 And saw heaven opened, and a certain vessel descending unto him, as it had been a great sheet knit at the four corners, and let down to the earth: {12} Wherein were all manner of fourfooted beasts of the earth, and wild beasts, and creeping things, and fowls of the air. {13} And there came a voice to him, Rise, Peter; kill, and eat.
Acts 10:28 And he said unto them, Ye know how that it is an unlawful thing for a man that is a Jew to keep company, or come unto one of another nation; but God hath showed me that I should not call any man common or unclean.

Ecclesiastes 3:18 I said in mine heart concerning the estate of the sons of men, that God might manifest them, and that they might see that they themselves are beasts.

1 Corinthians 15:32 If after the manner of men I have fought with beasts at Ephesus, what advantageth it me, if the dead rise not? let us eat and drink; for to morrow we die.

Titus 1:12 One of themselves, even a prophet of their own, said, The Cretians are alway liars, evil beasts, slow bellies.

2 Peter 2:12 But these, as natural brute beasts, made to be taken and destroyed, speak evil of the things that they understand not; and shall utterly perish in their own corruption;

Isaiah 56:8-11 The Lord GOD which gathereth the outcasts of Israel saith, Yet will I gather others to him, beside those that are gathered unto him. {9} All ye beasts of the field, come to devour, yea, all ye beasts in the forest. {10} His watchmen are blind: they are all ignorant, they are all dumb dogs, they cannot bark; sleeping, lying down, loving to slumber. {11} Yea, they are greedy dogs which can never have enough, and they are shepherds that cannot understand: they all look to their own way, every one for his gain, from his quarter.
Isaiah 60:6-8 The multitude of camels shall cover thee, the dromedaries of Midian and Ephah; all they from Sheba shall come: they shall bring gold and incense; and they shall show forth the praises of the LORD. {7} All the flocks of Kedar shall be gathered together unto thee, the rams of Nebaioth shall minister unto thee: they shall come up with acceptance on mine altar, and I will glorify the house of my glory. {8} Who are these that fly as a cloud, and as the doves to their windows?

Psalms 7:1-2 Shiggaion of David, which he sang unto the LORD, concerning the words of Cush the Benjamite. O LORD my God, in thee do I put my trust: save me from all them that persecute me, and deliver me: {2} Lest he tear my soul like a lion, rending it in pieces, while there is none to deliver.
Psalms 10:7-10 His mouth is full of cursing and deceit and fraud: under his tongue is mischief and vanity. {8} He sitteth in the lurking places of the villages: in the secret places doth he murder the innocent: his eyes are privily set against the poor. {9} He lieth in wait secretly as a lion in his den: he lieth in wait to catch the poor: he doth catch the poor, when he draweth him into his net. {10} He croucheth, and humbleth himself, that the poor may fall by his strong ones.

Proverbs 28:15 As a roaring lion, and a ranging bear; so is a wicked ruler over the poor people.

Isaiah 5:29-30 Their roaring shall be like a lion, they shall roar like young lions: yea, they shall roar, and lay hold of the prey, and shall carry it away safe, and none shall deliver it. {30} And in that day they shall roar against them like the roaring of the sea: and if one look unto the land, behold darkness and sorrow, and the light is darkened in the heavens thereof.

Genesis 49:27 Benjamin shall ravin as a wolf: in the morning he shall devour the prey, and at night he shall divide the spoil.

Jeremiah 5:6 Wherefore a lion out of the forest shall slay them, and a wolf of the evenings shall spoil them, a leopard shall watch over their cities: every one that goeth out thence shall be torn in pieces: because their transgressions are many, and their backslidings are increased.

John 10:12 But he that is an hireling, and not the shepherd, whose own the sheep are not, seeth the wolf coming, and leaveth the sheep, and fleeth: and the wolf catcheth them, and scattereth the sheep.

Ezekiel 22:27 Her princes in the midst thereof are like wolves ravening the prey, to shed blood, and to destroy souls, to get dishonest gain.

Zephaniah 3:3-4 Her princes within her are roaring lions; her judges are evening wolves; they gnaw not the bones till the morrow. {4} Her prophets are light and treacherous persons: her priests have polluted the sanctuary, they have done violence to the law.

Matthew 7:15 Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.
Matthew 10:16 Behold, I send you forth as sheep in the midst of wolves: be ye therefore wise as serpents, and harmless as doves.

Acts 20:29 For I know this, that after my departing shall grievous wolves enter in among you, not sparing the flock.

Numbers 27:17 Which may go out before them, and which may go in before them, and which may lead them out, and which may bring them in; that the congregation of the LORD be not as sheep which have no shepherd.

1 Chronicles 21:17 And David said unto God, Is it not I that commanded the people to be numbered? even I it is that have sinned and done evil indeed; but as for these sheep, what have they done? let thine hand, I pray thee, O LORD my God, be on me, and on my father's house; but not on thy people, that they should be plagued.

Psalms 44:22 Yea, for thy sake are we killed all the day long; we are counted as sheep for the slaughter.
Psalms 74:1-2 Maschil of Asaph. O God, why hast thou cast us off for ever? why doth thine anger smoke against the sheep of thy pasture? {2} Remember thy congregation, which thou hast purchased of old; the rod of thine inheritance, which thou hast redeemed; this mount Zion, wherein thou hast dwelt.
Psalms 95:7 For he is our God; and we are the people of his pasture, and the sheep of his hand...

Isaiah 53:6 All we like sheep have gone astray; we have turned every one to his own way; and the LORD hath laid on him the iniquity of us all.

Ezekiel 34 And the word of the LORD came unto me, saying, {2} Son of man, prophesy against the shepherds of Israel, prophesy, and say unto them, Thus saith the Lord GOD unto the shepherds; Woe be to the shepherds of Israel that do feed themselves! should not the shepherds feed the flocks? {3} Ye eat the fat, and ye clothe you with the wool, ye kill them that are fed: but ye feed not the flock. {4} The diseased have ye not strengthened, neither have ye healed that which was sick, neither have ye bound up that which was broken, neither have ye brought again that which was driven away, neither have ye sought that which was lost; but with force and with cruelty have ye ruled them. {5} And they were scattered, because there is no shepherd: and they became meat to all the beasts of the field, when they were scattered. {6} My sheep wandered through all the mountains, and upon every high hill: yea, my flock was scattered upon all the face of the earth, and none did search or seek after them. {7} Therefore, ye shepherds, hear the word of the LORD; {8} As I live, saith the Lord GOD, surely because my flock became a prey, and my flock became meat to every beast of the field, because there was no shepherd, neither did my shepherds search for my flock, but the shepherds fed themselves, and fed not my flock; {9} Therefore, O ye shepherds, hear the word of the LORD; {10} Thus saith the Lord GOD; Behold, I am against the shepherds; and I will require my flock at their hand, and cause them to cease from feeding the flock; neither shall the shepherds feed themselves any more; for I will deliver my flock from their mouth, that they may not be meat for them. {11} For thus saith the Lord GOD; Behold, I, even I, will both search my sheep, and seek them out. {12} As a shepherd seeketh out his flock in the day that he is among his sheep that are scattered; so will I seek out my sheep, and will deliver them out of all places where they have been scattered in the cloudy and dark day. {13} And I will bring them out from the people, and gather them from the countries, and will bring them to their own land, and feed them upon the mountains of Israel by the rivers, and in all the inhabited places of the country. {14} I will feed them in a good pasture, and upon the high mountains of Israel shall their fold be: there shall they lie in a good fold, and in a fat pasture shall they feed upon the mountains of Israel. {15} I will feed my flock, and I will cause them to lie down, saith the Lord GOD. {16} I will seek that which was lost, and bring again that which was driven away, and will bind up that which was broken, and will strengthen that which was sick: but I will destroy the fat and the strong; I will feed them with judgment. {17} And as for you, O my flock, thus saith the Lord GOD; Behold, I judge between cattle and cattle, between the rams and the he goats. {18} Seemeth it a small thing unto you to have eaten up the good pasture, but ye must tread down with your feet the residue of your pastures? and to have drunk of the deep waters, but ye must foul the residue with your feet? {19} And as for my flock, they eat that which ye have trodden with your feet; and they drink that which ye have fouled with your feet. {20} Therefore thus saith the Lord GOD unto them; Behold, I, even I, will judge between the fat cattle and between the lean cattle. {21} Because ye have thrust with side and with shoulder, and pushed all the diseased with your horns, till ye have scattered them abroad; {22} Therefore will I save my flock, and they shall no more be a prey; and I will judge between cattle and cattle. {23} And I will set up one shepherd over them, and he shall feed them, even my servant David; he shall feed them, and he shall be their shepherd. {24} And I the LORD will be their God, and my servant David a prince among them; I the LORD have spoken it. {25} And I will make with them a covenant of peace, and will cause the evil beasts to cease out of the land: and they shall dwell safely in the wilderness, and sleep in the woods. {26} And I will make them and the places round about my hill a blessing; and I will cause the shower to come down in his season; there shall be showers of blessing. {27} And the tree of the field shall yield her fruit, and the earth shall yield her increase, and they shall be safe in their land, and shall know that I am the LORD, when I have broken the bands of their yoke, and delivered them out of the hand of those that served themselves of them. {28} And they shall no more be a prey to the heathen, neither shall the beast of the land devour them; but they shall dwell safely, and none shall make them afraid. {29} And I will raise up for them a plant of renown, and they shall be no more consumed with hunger in the land, neither bear the shame of the heathen any more. {30} Thus shall they know that I the LORD their God am with them, and that they, even the house of Israel, are my people, saith the Lord GOD. {31} And ye my flock, the flock of my pasture, are men, and I am your God, saith the Lord GOD.

John 10:1-16 Verily, verily, I say unto you, He that entereth not by the door into the sheepfold, but climbeth up some other way, the same is a thief and a robber. {2} But he that entereth in by the door is the shepherd of the sheep. {3} To him the porter openeth; and the sheep hear his voice: and he calleth his own sheep by name, and leadeth them out. {4} And when he putteth forth his own sheep, he goeth before them, and the sheep follow him: for they know his voice. {5} And a stranger will they not follow, but will flee from him: for they know not the voice of strangers. {6} This parable spake Jesus unto them: but they understood not what things they were which he spake unto them. {7} Then said Jesus unto them again, Verily, verily, I say unto you, I am the door of the sheep. {8} All that ever came before me are thieves and robbers: but the sheep did not hear them. {9} I am the door: by me if any man enter in, he shall be saved, and shall go in and out, and find pasture. {10} The thief cometh not, but for to steal, and to kill, and to destroy: I am come that they might have life, and that they might have it more abundantly. {11} I am the good shepherd: the good shepherd giveth his life for the sheep. {12} But he that is an hireling, and not the shepherd, whose own the sheep are not, seeth the wolf coming, and leaveth the sheep, and fleeth: and the wolf catcheth them, and scattereth the sheep. {13} The hireling fleeth, because he is an hireling, and careth not for the sheep. {14} I am the good shepherd, and know my sheep, and am known of mine. {15} As the Father knoweth me, even so know I the Father: and I lay down my life for the sheep. {16} And other sheep I have, which are not of this fold: them also I must bring, and they shall hear my voice; and there shall be one fold, and one shepherd.
John 10:26-28 But ye believe not, because ye are not of my sheep, as I said unto you. {27} My sheep hear my voice, and I know them, and they follow me: {28} And I give unto them eternal life; and they shall never perish, neither shall any man pluck them out of my hand.

Matthew 23:13-15 But woe unto you, scribes and Pharisees, hypocrites! for ye shut up the kingdom of heaven against men: for ye neither go in yourselves, neither suffer ye them that are entering to go in. {14} Woe unto you, scribes and Pharisees, hypocrites! for ye devour widows' houses, and for a pretence make long prayer: therefore ye shall receive the greater damnation. {15} Woe unto you, scribes and Pharisees, hypocrites! for ye compass sea and land to make one proselyte, and when he is made, ye make him twofold more the child of hell than yourselves.

Psalms 57:3-6 He shall send from heaven, and save me from the reproach of him that would swallow me up. Selah. God shall send forth his mercy and his truth. {4} My soul is among lions: and I lie even among them that are set on fire, even the sons of men, whose teeth are spears and arrows, and their tongue a sharp sword. {5} Be thou exalted, O God, above the heavens; let thy glory be above all the earth. {6} They have prepared a net for my steps; my soul is bowed down: they have digged a pit before me, into the midst whereof they are fallen themselves. Selah.

Isaiah 11:6 The wolf also shall dwell with the lamb, and the leopard shall lie down with the kid; and the calf and the young lion and the fatling together; and a little child shall lead them.

Isaiah 11:7-8 And the cow and the bear shall feed; their young ones shall lie down together: and the lion shall eat straw like the ox. {8} And the sucking child shall play on the hole of the asp, and the weaned child shall put his hand on the cockatrice' den.

Isaiah 59:1-15 Behold, the LORD'S hand is not shortened, that it cannot save; neither his ear heavy, that it cannot hear: {2} But your iniquities have separated between you and your God, and your sins have hid his face from you, that he will not hear. {3} For your hands are defiled with blood, and your fingers with iniquity; your lips have spoken lies, your tongue hath muttered perverseness. {4} None calleth for justice, nor any pleadeth for truth: they trust in vanity, and speak lies; they conceive mischief, and bring forth iniquity. {5} They hatch cockatrice' eggs, and weave the spider's web: he that eateth of their eggs dieth, and that which is crushed breaketh out into a viper. {6} Their webs shall not become garments, neither shall they cover themselves with their works: their works are works of iniquity, and the act of violence is in their hands. {7} Their feet run to evil, and they make haste to shed innocent blood: their thoughts are thoughts of iniquity; wasting and destruction are in their paths. {8} The way of peace they know not; and there is no judgment in their goings: they have made them crooked paths: whosoever goeth therein shall not know peace. {9} Therefore is judgment far from us, neither doth justice overtake us: we wait for light, but behold obscurity; for brightness, but we walk in darkness. {10} We grope for the wall like the blind, and we grope as if we had no eyes: we stumble at noon day as in the night; we are in desolate places as dead men. {11} We roar all like bears, and mourn sore like doves: we look for judgment, but there is none; for salvation, but it is far off from us. {12} For our transgressions are multiplied before thee, and our sins testify against us: for our transgressions are with us; and as for our iniquities, we know them; {13} In transgressing and lying against the LORD, and departing away from our God, speaking oppression and revolt, conceiving and uttering from the heart words of falsehood. {14} And judgment is turned away backward, and justice standeth afar off: for truth is fallen in the street, and equity cannot enter. {15} Yea, truth faileth; and he that departeth from evil maketh himself a prey: and the LORD saw it, and it displeased him that there was no judgment.

The other possible interpretation is that all the beasts represented in Isaiah 11 are referring to the uniting of the Jews and the Gentiles in Christ Jesus, and that in Christ Jesus there is no difference. We are all one in the body of Christ. Isaiah 2 prophesied that their would be no more war under the Messianic reign. Ephesians says that not only is there peace with God, there is also peace with each other, specifically that the middle wall of partition has been broken down between Jew and Gentile. This peace treaty brought about by the the precious blood of Christ could very well be that which we see in Isaiah 11 as it also says, "they shall neither hurt nor destroy in all my holy mountain." This mountain corresponds directly with Isaiah 2:

Isaiah 2:1-5 The word that Isaiah the son of Amoz saw concerning Judah and Jerusalem. {2} And it shall come to pass in the last days, that the mountain of the Lord's house shall be established in the top of the mountains, and shall be exalted above the hills; and all nations shall flow unto it. {3} And many people shall go and say, Come ye, and let us go up to the mountain of the LORD, to the house of the God of Jacob; and he will teach us of his ways, and we will walk in his paths: for out of Zion shall go forth the law, and the word of the LORD from Jerusalem. {4} And he shall judge among the nations, and shall rebuke many people: and they shall beat their swords into plowshares, and their spears into pruninghooks: nation shall not lift up sword against nation, neither shall they learn war any more. {5} O house of Jacob, come ye, and let us walk in the light of the LORD.

Romans 15:8-12 Now I say that Jesus Christ was a minister of the circumcision for the truth of God, to confirm the promises made unto the fathers: {9} And that the Gentiles might glorify God for his mercy; as it is written, For this cause I will confess to thee among the Gentiles, and sing unto thy name. {10} And again he saith, Rejoice, ye Gentiles, with his people. {11} And again, Praise the Lord, all ye Gentiles; and laud him, all ye people. {12} And again, Esaias saith, There shall be a root of Jesse, and he that shall rise to reign over the Gentiles; in him shall the Gentiles trust.

Luke 1:68-75 Blessed be the Lord God of Israel; for he hath visited and redeemed his people, {69} And hath raised up an horn of salvation for us in the house of his servant David; {70} As he spake by the mouth of his holy prophets, which have been since the world began: {71} That we should be saved from our enemies, and from the hand of all that hate us; {72} to perform the mercy promised unto our fathers, and to remember his holy covenant; {73} The oath which he sware to our father Abraham, {74} That he would grant unto us, that we being delivered out of the hand of our enemies might serve him without fear, {75} In holiness and righteousness before him, all the days of our life.

Romans 15:12 And again, Esaias saith, There shall be a root of Jesse, and he that shall rise to reign over the Gentiles; in him shall the Gentiles trust.

Isaiah 11:1 And there shall come forth a rod out of the stem of Jesse, and a Branch shall grow out of his roots:

Isaiah 11:10 And in that day there shall be a root of Jesse, which shall stand for an ensign of the people; to it shall the Gentiles seek: and his rest shall be glorious.