That seems like quite an assumption. Looks like the occupation is doing a pretty good job of 'making things worse' all on its own. Not to mention that there are more questions to consider than just 'Is it ideal for Israelis?' Like for example, oh, I don't know 'Is it RIGHT?' What profit is it to a man if he gains the whole world and loses his own soul?
Roadside bomb kills five border officers in western Iraq (AP)
from the article: Israel needs to launch a preemptive diplomatic strike