"The issue with Israel and Palestine is the fact that Israel refuses to admit that what they're doing is wrong. "
The political power in Israel has slowly shifted from European Jews influences to those of Jews who were expelled from Arab countries after 1948/67/73. The result is the increasing adoption of the "winner takes all" style of power that is more prevalent in countries in the region.
It is not helped by the Jewish religious hard-liners who hate the culture of a liberal democratic Israel. They often hold a balance of power and are out-breeding the rest of the Israeli Jews. They want their biblical lands restored to them alone - and that is the political impetus behind the West Bank settlements.
It was said of Yasser Arafat that several times he "snatched defeat from the jaws of victory" by refusing what were seen as unrepeatable major opportunities for a two-state deal. He wanted everything.
Israel pulled out of Gaza - forcibly removing their settlers in the process. They left behind intact working agricultural and industrial infrastructure that could be put to good economic use. These facilities were then looted and destroyed by the people of Gaza. The political understanding that their withdrawal would result in less cross-border rocket attacks from Gaza by militants proved worthless.