Decent points you make. However what has happened to Israel when they have been 'tractable' to the Palestinians? Like with the settlements? It ended up in rockets being fired into Israel and attacks from that location on Israelis. In addition, what about the Arabs who live in Jerusalem and Tel Aviv. They are allowed to go unmolested in Israeli sociey, that is until they plant a bomb on a bus or in a restaurant to kill as many Jews as they can. So if the Israelis are intractable you can obviously see why.
And as far as backing a dog into a corner, there is plenty of money available to many of the Arab courntries in North Africa. They could help the Palestinians build a thriving economy, which might allow them to trade with neighboring countries, perhaps even Israel. But unfortunately the same people who bankroll the likes of Hezbollah, don't appear to have the welfare of the Palestinians in mind.
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