Furthermore Israel from approx. 2003-2023 was at the historical height of its power and was in a golden age of economic development and security relative to its neighbours. Israel had every opportunity to follow through with stopping colonization and then disbanding the settlements in return for its recognition by the rest of the Middle East. Regardless of Hamas or Hezbollah. They couldn't threaten Israel, or so it seemed, and by exercising good will and political wisdom Israel could isolate them.
Why didn't it pursue this avenue? Who knows.
You can blame Netanyahu but he's just the public face of a much wider, 'greater Israel' political movement.
But what isn't a mystery to me at all is why radically-orientated forces cemented themselves in Gaza in turn. What would you have the Palestinians do, await the fate of the Red Indians?