Both Palestinians and Israelis are hostage and victim of one long sick saga.
The Israeli economy is utterly dependent upon the arms and security industry. And for all the weapons manufactured and sold into the world market, the value goes up immensely if they are “live tested.” Meaning the wares tested in conflict. So the Israeli war economy needs conflict to give vastly added value.
In other words, battle conflict with people of Gaza — relatively small as it is, give huge returns to the main industry. These bombings are good for Israel, which needs conflict to support itself as it now exists.
As for the Palestinians? One could make the argument they have been betrayed (as Israelis, but in a different manner) by their own leadership. Like all occupied populations, there are the elite of the occupied who have carved our position and privileged from the occupiers. Without the status quo they have nothing. They, too, need the conflict.
What threatens the current status quo? The possibility that the man and woman on the street figures it out. That is why both sides are indoctrinated to fear each other.