The goal is for both the Israeli and Palestinian states to exist and for there to be peace. An Israeli hegemony over the Palestinian state, with settlers and all, certainly doesn’t help that, and it may be a rational goal of the Palestinian state to become too much of a nuisance to be ignored. If peace means subjugation, I think many Palestinians probably wouldn’t be okay with that. The Palestinians are seeing a lot of “might makes right” arguments right now about why they should just accept subjugation.
For the Palestinians, perhaps reducing the Israeli would increase freedom in the short term. In the longer term, in the absence of Israel, it seems more likely they would end up dominated by either larger neighbors like Lebanon by Syria or experience low-freedom autocracies like Egypt, Iraq, etc.
And if one can understand why Israel would fight for its right to exist as a state, then why should it be surprising that the Palestinian state fights for the same reason?
Instead, the argument is that the observable fact is that continued violence has not helped the palestinian cause.
It simply has not worked.
That's not a moral statement. It is simply the descriptive truth that violence for decades has not helped their cause, and therefore it probably won't in the future.