The problem is that they are like us. Jews abandoned the relative safety of the diaspora for a life full of hardship and dangers in the Promised Land. Neither will Palestinians trade their nationalist ambitions for the Jewish state’s benefits. Israeli jobs give them money, Israel welfare gives them spare time, and Israeli education teaches them—with Jewish examples—that nationalism is noble. They will fight.
They are like us and want the same land. Like us, they do not want to live under foreign laws and alien customs. Like us, they know persecution and fear and dislike oppressors. The things important for us are important for them. The land is too small to negotiate. We want the Judea they are settling now, and they want Jerusalem we are settling. An agreement will be unacceptable to both sides. Both will take an agreement as a springboard for the final battle.
The older generation of Israeli Arabs remembers the wars and the Bronze Age economy and values the Israeli benefits. The new generation takes the benefits for granted and asks for equality—essentially, a share in controlling the Jewish state. For many Arabs, even equality is not enough—they want their country back, regardless of the economic consequences.
Israeli bribes are counterproductive. For decades, Israel has tried to buy Arab loyalty with a tax-free environment, huge municipal projects, medicine, education, welfare, and plenty more. The Israelis have imagined that loyalty can be bought. No. Loyalty to the state is the product of ideological conviction. The welfare bribes only convinced the Arabs that Israel needs them, oppresses them, and is indebted to them. They are not loyal, though they are quiet for the time being, always mindful to complain of inadequate free services and demand more perks.
We are breeding the enemy.