It would be nice if one side could break the cycle of responding to violence with more violence, but that seems unlikely to happen, especially when one side is essentially defined by their intent of violence towards the other.
Israel backing out (removing settlements) and allowing for Palestine self governance isn't going to magically make hamas be nice. Israel would only agree to that kind of measure if they got to maintain some amount of influence over the region so that they could have some reasonable confidence that they can at least assess active threats against them. And suddenly we're back to 2005 Israeli disengagement, where they did withdraw their settlements in gaza and reduced their physical presence instead opting for trying to influence "remotely" while allowing Palestine to self-assemble it's governance. Turns out doing that is actually really hard, hamas took over anyway, and it landed everyone in the current mess.
Suggesting that they just do it again but trust me bro this time it'll work, or suggesting that what they really need to do is also relinquish any influence they have over the region is just not an idea that is going to make it off the ground. Some compromise related to it is probably what will happen, and we can all set our watches for the next iteration.
Again, it's almost like we're stumbling into how this is one of the trickiest geopolitical issues in the last hundred years