Because Israel isn't escalating this at all with the palestine conflict...
Netanyahu is a warmongerer that keeps the conflict alive, because it serves his interests, in increasing antisemitism, resulting in jews feeling increasingly threatened, and starts to consider relocation to Israel, increasing support for Netanyahu.
USA defense contractors make a ton of money, that originates with the U.S. tax payer, by selling weapon systems to Israel. Powerful economic interests in the USA want the unfortunate situation in that area to continue. There is a lot of money to be made in war, unfortunately.
And unfortunately, antisemitism doesn't take its root in the palestinian conflict, but in religious books ( both christian and muslims). Which are much older than Israel, and won't change no matter the number of square kilometers of the palestinian state.