That area will never be peaceful. Israel is there to stay and the Palestinians need to accept that if they ever want to live in peace. If you look at the history of that area, what a mess.

https://www.un.org/unispal/history/

Their best chance at any kind of peace and co-existence is a two-state solution. The Hamas government has to go first, though. There are no winners even in that, but there is tolerance. Its a first step.