I think you are underestimating the psychopathy of domination - it's pretty obvious that young hotheads who have lost family members and are routinely humiliated at checkpoints, would join Hamas and indeed strike Israelis.

Of course, THAT would provide the perfect cover and excuse to keep suppressing/occupying and grabbing land off the Palestinians.

And then... Ker-Ching - more money for the fuckers in corporate suits in. the West who sell weapons and build Zionist settlements.