It's in Israel's and Palestine's best interests to reach a mutually beneficial solution. Simply saying "they won't accept our terms" isn't good enough. You have to find terms they and you accept and build on them.
Sounds nice. But the Palestinians don't care about a mutually beneficial solution. So now what?
You make it sound like Palestinians all share some kind of over-mind and that they have no desire for what benefits them individually, only what will benefit the hive, and they haven't a clue that what benefits the hive is fewer killings of hive members and less destruction of the hive itself.
You make it sound like the PA isn't pursuing a diplomatic solution by working with other nations and the UN.
You make it sound like there never was a peace agreement the Palestinians backed, never a deal that they honored, never some kind of, oh let's call it an "Accord", that they wanted implemented which would have guaranteed the existence of both a Palestinian State
and the State of Israel, each with their own focus on upholding and defending the Rights of their populations while respecting the Rights of their neighbors as well.
It's arrant nonsense, and that's putting it mildly.
And you have to find the wherewithal to stay the course when the inevitable push back from extremists happens. We all know extremists will try to derail any agreements that don't meet their extreme demands. Don't let them control the agenda.
Perhaps you haven’t been paying attention, but the Palestinian people have been, and are, led by extremists. Its pretty clear that the average Palestinian is an extremist. There's no moderate Palestinian movement. Whenever a moderate Palestinian emerges the western powers shower money on them (Arafat, Abbas) and it turned out these people had no popular support. It was just a scam to fool the west out of money.
Perhaps you haven't been paying attention but the Israelis have been, and are, led by extremists as well.
Menachem Begin was an Irgun terrorist.
Yitzhak Shamir was a Lehi terrorist.
David Ben Gurion and Moshe Sharett coordinated with Begin and Shamir when Plan Dalet was developed and implemented, and worked with them after Zionists declared the existence of the State of Israel.
Ariel Sharon was found guilty of war crimes by an Israeli court.
Netanyahu claimed he personally sabotaged the Oslo Accords, led the mock funeral procession (with coffin and a hangman's noose) at the rally of extremists who chanted "Death to Rabin" for hours because Rabin had agreed to a peace deal, was a leader of the same extremist faction(s) that produced not only Rabin's murderer but also the terrorist who murdered scores and wounded over a hundred of unarmed people as they knelt in prayer, honored terrorists with a gala event featuring a real, live terrorist guests could talk to about the murders he helped commit, and that's not even taking into account his more recent activities and who has has working for him in his administration.
If you think the extremist are all Palestinians then you really don't know who's who in this conflict.
Anyway, extremists have been in control of the agenda since Rabin was murdered and Abbas failed to deliver a Palestinian State to the Palestinian people. That has to change for there to be peace.
Hamas must be defeated and removed from power. The extremists in Israel, currently empowered by Netanyahu pushing their agenda, have to be defeated as well. Hopefully that can happen without bloodshed but I don't think it will. Kach might be banned as a party but it's philosophy is alive and well in the settlements. I expect things will get even uglier there if/when they feel their influence waning.