There were no recognised borders pre-67, only armistice lines. Unless both sides negotiate and agree final borders - in essence roughly the Green Line with deviations to allow for various land swaps - there will be no peace and ultimately another war. Neither side really wants that. Bibi has blamed the old coalition partners for his inability to make peace. No doubt he will blame this new cialition if and when he does make peace. As the senior partner in a coalition, it is customary to blame the junior partners for all unpopular government decisions. In this case, making peace or more specifically compromising with the Palestinians, would be a popular move outside Israel and especially outside of Likud but not with the right wing of Israeli politics and public opinion.
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IDF fires tank shells toward Gaza in response to mortar fire (Haaretz)