Israel must take a large amount of responsibility for the state of affairs in the area. Many Palestinians, as I have already said , and you conveniently ignored, had businesses, farms, olive groves, hotels, and this paper is one of many round the world which has reported on the destruction of those farms and industries by Israeli armed forces. If you look back on the history of colonial powers, and the response to colonisation by the locals, you would find it easier to understand the cause of Palestinian opposition to Israel's presence. You should not forget the acts of terrorism carried out by Stern gang and Haganah. Nonetheless, there are many Palestinians who do want peace, but not at any price. Israel should leave its 18th century colonialist mindset, and come into the 21st century. Starving the Palestinians will feed resentment.
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from the article: World Bank says underestimated depth of Palestinian crisis