Very sensible, pragmatic post and well worth pondering!
The biggest problem is: Israelis truly are determined to have a largely, if not exclusively, Jewish-majority state at least between the Jordan River and the Med. Sea (including the West Bank and Gaza). Some apparently educated Israeli blogger I read yesterday even saying things like 'Grab Lebanon up to the Litani River to help Israel's water table' ... 'Israel is about the size of Taiwan and so can have 25 million Jews to make a viable military and industrial' base'.
These thoughts must be in significant part of the Israeli society--Netanyahu is not alone--he has been the longest serving Israeli PM for a reason!
To sum up: Israel, in its current form, is truly a colonial, racist, expansionist enterprise looking for a Lebensraum with only possible tolerance of the Untermensch. Once we truly understand that then all of Israel's and/or its backers' actions going back to late 19th century, including inciting at least World War II, would start to make sense. And such an ideology can only be beaten back through violence.