The factual position is that Israel has Arabs by the balls and there is nothing they can do about it now. They got a chance in 1948 to make a State in Palestine they decided to go to war with Israel and lost.
Theb again after 1948 they had Gaza, Jerusalem and West Bank for 20 years and they never made a Palestinian State. And never recognized Israel.
There is a thing called taking responsibility for your actions. Instead of recognizing state of Israel and Palestine, Arabs decided to go to war and they lost, now they are facing the consequences of their decisions and actions while Israel benefited.
Even now Arabs have a chance to try for peace but instead they are sending rockets from Gaza, barricading Al Aqsa mosque with weapons and shooting up police stations in Israel. They will get result of that very soon.
I think Israelis are very reasonable people and they have been very lenient with Palestinians they even returned Sinai to Egypt for peace, if Arabs approach them with sincerity they will return some of the lands in exchange for peace but unfortunately Arabs still don’t recognize Israel and their right to live, they still chose war and so they have to take responsibility for their decision and they will keep losing more land to Israel.