Your #1 is encoding an unexamined assumption that there is a fixed or at least somewhat inflexible amount of violence to be directed anywhere. It also ignores the lightning generation engine, so to speak, that is the settler colonialism causing unrest across the region.
On #2 - Rational people see that they are willing to do everything short of nuclear war when they feel like their century of history is being re-evaluated, and are worried about that (appropriately so). Also, it is an error to assert that nations can be exterminated. That is something evil that happens to people. As organizations of people, institutions and states can fail or be dissolved, but do not disappear permanently so long as people remain to re-form them. I think rational people can argue that the things that are being done in Palestine are unconscionable and that a state that is built to systematically support those acts needs to renew its principles and recommit itself to the idea of "never again".