Maybe you keep forgetting that Palestinians have recognized Israel as a Jewish state some time ago. And pretty much gave Israelis all they want. But Israelis like to keep this lie going and frankly I don't know what more can they do?? The Likud is pretty much a settlers government from the settlers by the settlers and TO the settlers.
Tell me how would you feel when you look at your father's land of which you have papers for etc. but Israel just steps right in build a fence and then build houses there. You expect the common people to just say Ok no problem ... Then you are being inconsiderate here.
No one is refuting what you are saying but but Palestine should guarantee safety of Israel and no anti - Israel activity should take place in its soil.
Trust is hard but need a leap of faith.