Not to mention the continuation of apartheid in Israel itself and expansion of settlements in the west bank.
This situation was created because Netanyahu has supported Hamas for a long time, even before 2005, as a classic divide and conquer strategy, to not allow PA to control both territories. But the US also helped as Bush forced elections early when PA had a reputation of being corrupt, and when they lost the election they tried to get PA to do a coup and Hamas kicked them out from Gaza.