I hope Iraq does not become our own national West Bank. The Israeli conflict has persisted for the same reasons you mention.
And sadly enough with the help of our state department as well. People forget it was Israel who ended Saddam's nuclear program. But yes it seems every time Israels leaders say enough is enough and try to deal with terrorism on their borders lo and behold in steps the U.S. State Department who enabled such scum as Arafat. Had we left Israel alone I do wonder how many M.E. issues we would be facing. Remember that little nation took on the region all at one time and won.
It is also unnerving to me that our government is pushing Israel into peace agreements. If anyone studies the Good Book that kind of policy with Israel should make them real nervous. Israel will indeed be deceived into a peace agreement.