cat I agree that fundamentally it's all about oil and the broader region. But I disagree that instability is a strategic goal for the West -- instability actually threatens the cheap supply of oil.
What they really prefer are stable dictatorships in every country. People are fond of pointing out US support for Israel but let's look at the huge US support for Egypt, Saudi Arabia, Jordan, etc -- the first Gulf War was fought to defend Kuwait and Saudi. Propping up autocracies who would supply oil.
The peace process in the 90s was meant to bring stability (not democracy) to the region. I think this is still motivating the US and the West. They don't really care about democracy and human rights, they want stability and they want their oil. That's why they default to siding with Israel. But it's also why the whole region is blowing up, because people are tired of living under Western constraints.
You want to talk solutions? Right now there is no solution because you can't look at the conflict in isolation, you have to look at the whole region. The entire political order and value system that was imposed upon the Middle East after WW1 is collapsing. THAT is the real problem.
The idea of creating a permanent map of two states with official borders and mutual non-interference -- it's a lovely idea but it's a bit 20th century now. The new reality is ISIS creating a new state out of Syria and Iraq and slaughtering everyone, Saudi and Qatar and Iran funding insurgents, Egypt teetering between autocratic regimes while the Sinai falls apart, Libya descending into complete chaos.
With that kind of regional context, neither Israel nor Hamas have any incentive to go back to the Oslo parameters. They will keep fighting it out and trying to grab what they can. They will put up with instability and war crimes and civilian suffering rather than give up anything they want.
Sorry to be so bleak but that's how I see it.