I don't believe that the problem is fear of peace. Israeli, as well as Arab behavior, is rooted in old habits and even older ideologies. The Israeli right wing, today a significant majority of the population, is composed of groups adhering to ideas developed much before the present opportunities for peace. The "old right", followers of Jabotinsky, follow his "Iron Wall" (1923) article, postulating that Arab will only accept the Jews when they are suppressed long enough. No other way can work. The Russian newcomers (20% of Israeli Jews) follow their old Soviet habits of brute force solving problems. And the religious right follow their myth of messianic redemption. They prepare the way for the myth to become reality by behaving as if it was reality. Not to be outdone, Hamas and the Arabs also follow their old habits developed when their civilization had power. Its reality is gone, but old habits die hard.
from the article: Fear of peace will be the death of Israel