As humiliating as it might seem, any territory and autonomy the Palestinians in the West Bank and Gaza might eventually attain will be as a gift from the Israelis. The price the Israelis pay for withholding those gifts is the small cost in dollars and lives the Israelis lose maintaining the violence at a low level. Until the Palestinians change there attitude from one of demanding and violence to one of peaceful supplication, I doubt anything will change.
I think it is the Israeli intention to humiliate the Palestinians by continuing to deny them what they had previously offered but the Palestinians rejected.
What was not good enough before would be a bonanza today.
You want a gift from the Israelis then you need to surrender and accept whatever they offer. The Israelis will not surrender to International Opinion or the Palestinians. If the U.S. withdrew all its support for Israel (something that will never happen) Israel would not cave, the would just buck it up and give us the finger. Times might be good in Israel but I don’t think they have gotten soft. The hard times are still a recent enough memory to keep them strong in the face of adversity.
I can’t see the Palestinians calling quits on the resistance but I think that would be in their best interests. The final deal they will get, gets worse every year.