It seems to me that Israel's status as THE military super-power in the area has become the basis of a financially very advantageous trade of military expertise globally, gained and based mainly on the occupation. So the Palestinian dreamers of 'armed struggle' are in effect furthering Israeli prosperity. They should probably submit a bill for economic services rendered. Think of the devastating effect on the Israeli economy and employment figures if the Palestinians just sat back on their duffs and and threatened nothing. Now that would be effective warfare!
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Initial report of stabbing attack in South Hebron Hills (Haaretz)
from the article: Palestinian PM: Declaration of statehood just a formality