"It's that occupation thing. It should've been solved decades ago."
I was in downtown Tel Aviv years ago and we drove past a mosque that was being renovated. The driver was telling me how the government was helping to build/rebuild mosques for the Arabs there. My head almost exploded because I knew how Muslims are, and I knew this would become a fort for them in the middle of the city. I said to the driver, "This is a waste of time."
Many Israelies are very Liberal, like most American Jews are. They did not see things that way. They really truely believed that if they were 'nice' to the Arabs, that they could make them 'like' them and that they could then team up together. They did not see the situation as I did. We see this same mentality in Europe today.
The only solution for a stable Israel would have been to drive all the Arabs out of the borders, then seal everything off. But like you said the time has past for this to happen. Now, they have constructed a big mess, and I do not know what the solution is today.
It is obvious that the Arabs are only interested in perpetual war, and perpetual violence, and there is, and never will be , a way to make 'peace' with them. They don't want it.
And believe me, even if there were no Jews in Israel and it was 100% Arabs, they would still be living in a hellhole, perpetually at war with each other and their neighbors. That is just how they are. Just listen to them. They say this themselves openly and proudly.