Palestinians are being used as a proxy by outside forces. The population is being sacrificed to make larger, more strategic, political goals. They are pawns in a greater struggle than their own daily struggles.
Sadly, there is nothing Israel can do about that and they have to face the person placed in front of them.
Jews want to live in peace in Israel. Some politicians and a small minority of the Jewish population are more radical in their beliefs. They generally do not wield great power, but they are often part of the coalitions that are a fact of Jewish politics.
Having been to Israel numerous times, and knowing a fair few Jewish people, I can only say that most Jewish people I know and have met only want some security from the constant stream of anti-Semitic vitriol that emanates from their close neighbors and have no desire to move out into the settlements in order to attempt to move borders. Indeed, the current borders are a function of defensive wars fought against those who constantly seek to both minimize and remove the Israeli state.
To be fair, I don’t know anyone living in Gaza or the West Bank, so I don’t have l any of their personal stories for comparison. However, I believe the majority of Palestinians would like to raise their families in peace and prosperity, too. As I have said, I believe they’re used as pawns. Fodder for the larger strategic goals of their masters.