Also, I'm not sure who you mean by "they". Let's talk about specific people: past governments are mostly dead, current generation was born into this situation the same as Palestinians were born into theirs. "They" (current Israeli population) can't end the occupation; there are no feasible options. So what "they" should do in case a neighboring nation kills a thousand of "them"? Again, these people have nothing to do with occupation. The kids at that rave party most likely considered themselves as far left (just given the demographics). I myself am far left; I'm a part of "them", and I'm against the occupation, but no one is able to come up with a solution that would satisfy both sides.
So when you talk about "them", whom do you mean? Who'd you expect would find a solution if you can't even solve this smaller moral dilemma of what your country's response should be in case of Oct. 7?
edit: like, how can you overreact if no one can say what "non-over" reaction should be?