The key to understanding Trumps plan is knowing who hes selling it to.
Previous peace plans were aimed at both Israelis and Palestinians specifically to more moderate and compromise-minded sections of those two peoples. Trumps plan is intended for an entirely different clientele: right-wing Israelis, right-wing American Jews and, particularly, Trumps base of evangelicals.
But thats not all: the Trump plan offers something even more worthwhile for its prime audience. After all, the chances of actually delivering on de facto annexation are slim. Netanyahu or Trump may not be in power long enough to implement any of the plan. They may not even want to, but instead just virtue signal the deal of the century.