1. The PA is clear it will accept Israel; Hamas has also has indicated diplomatically a willingness to compromise and to withdraw it's traditional opposition to Israel's existence. It ought to be perfectly obvious at this point that a negotiated settlement resulting in a sovereign Palestine co-existing with Israel would be enthusiastically endorsed by the entire Arab world.
2. Israeli terrorism against Palestinians has always, always, always, killed and wounded vastly more innocent Palestinians than Palestinian terrorism has inflicted against innocent Israelis. All terrorism is entirely wrong; it's incumbent on Israel, which hides behind claims of "democracy" but is militarily far more powerful than the people it attacks, to stop its terrorist attacks against the civilians populations of its enemies.
3. What is Israel's goal in all this? Do they want peace? If they could get anything they wanted from the Palestinians, what would they want? Would they accept the West Bank and Gaza as a Palestinian state if the Palestinians accepted Israel, gave up E. Jerusalem and gave up whatever other claims they currently have? If so, does that mean Israel would evacuate all the settlers back into Israel? It makes no sense. Or is Israel only willing to accept a Palestine with a map carved up into swiss cheese, riddled with permanent annexed settlements? How could such a thing ever be possible?
So, what does Israel actually want? It appears it is nothing less than the complete annihilation or enslavement of the Palestinian population in a single greater Israel. Is that not the case? If not, then what?