Those two regimes won every battle easily, but what eventually did them in was sanctions. And, when the West sanctions you, you eventually collapse or stay economically irrelevant. Case in point: USSR, Maoist China, Rhodesia, South Africa, etc.
But, the Boomer, Christian Zionist generation is dying out, along with older Germans (and Europeans) who still struggle with some Teutonic guilt.
Irreligious, humanist youngsters across the Americas and Europe now see it's a clear good vs. bad struggle and the Zionists are not the good guys, so Israel likely believes they need to expel the Palestinians from Gaza & the West Bank within one generation or they'll be facing devastating sanctions within 10-20 years.
Given that Israel's economy depends heavily on technology service exports, diamonds, and agriculture, if they don't change posture and end up getting sanctioned, it'll cripple them without a doubt. Just cutting off their technology workers' foreign exchange salaries is enough to shrink the economy by half once that FX channel dries up.