All the US money poured into the region for the last 60 years has allowed everyone to perpetuate the conflict. You've never had to choose between defense and settlements. You've never had to choose between starving out the Palestinians and talking to them. The Palestinians have never had to choose between starvation and working with you to achieve self governance. The Palestinians are under a fairly complete embargo now. If Israel had to pick up all the pieces, now and in the future until an independent and functioning Palestinian government existed (including control of the Gangs), without any outside assistance, you might have some incentive to settle this mess.
UN: Gaza could be 'uninhabitable' by 2020 if trends continue (AP)
from the article: IDF finds bodies of missing sailors aboard damaged Navy ship