The real danger that has come to exist is that the Israeli government is going farther than ever before. They're becoming ever more extreme in the sense that this isn't even about terrorism anymore. It's about messaging to the Arab world that Israel cannot be touched and they'll do whatever they want.
At this stage even arms restrictions aren't going to cut it. That would achieve a ceasefire but in the end this whole problem fundamentally requires regime change in Israel. That regime is not plotting peace or a ceasefire, they're plotting to end all territorial claims over Israel by annihilating anybody who dares to act to make such a claim.
They're acting to make the repercussions of all actions against Israel so terrible that nobody will dare to do it and from there they'll do whatever they want. They'll then take all territory from the Palestinians and the Palestinians will be absorbed into the Arab world and essentially erased.