its started when the combined arab forces attacked Israel, and ended with Israel conquering the 80%. land won in a defensive wars may be kept according to international law (this law is designed to reduce aggression, as aggression can not officially result in expanding territory). The arabs attacked and lost. and yes they have to pay the price, or they can keep on fighting in hope of destroying israel, but if they don't succeed then any territory they occupy is forfeit as it is taken in an offensive war. Basically, everyone is better off with peace cause war at this point wins no one anything.
Judge orders Jerusalem Gay Pride attacker to undergo psychiatric evaluation (Haaretz)
from the article: The historical truth behind the Israeli-Palestinian narratives