Netanyahu is such a polarizing figure, he drove deeper and deeper division in the electorate. Its like rain the seeps into a tiny fissure in solid rock. Along comes a deep freeze, the water swells and turns to ice and breaks the rock apart.
Like the United States, demographics are driving ice cold fear deeper and deeper. Jewish birth rates are going down. If Palestinians were granted full citizenship rights, they could easily form the majority in a couple generations. If that happened, Jews are afraid we would be a stateless people again and history offers no hope to the contrary.
Don't forget, that after WW2, the American and European response to concentration camp survivors was immoral to the point of sheer insanity. No one in their right mind, would ever depend on American or European morality for their lives.
Iran uses Palestinians as a proxy and America uses Israel as a proxy in the region. Both Iran and America are after oil and shipping/trade routes.
In the desert water is the difference between life and death. Control of head waters and access to Mediterranean ports spell survival. When it comes to drinking water, water for crops and towns and access to ports, the Palestinians share has shrunk ever smaller.
There are solutions, no doubt about that. De-salination plants for example. But Iran and America are fighting proxy wars and have no money left for human beings.