This generation has no illusions that there will ever be a peace with the Palestinians and that the Palestinians will settle for nothing less than the destruction of Israel and the killing or enslaving of it's people.
In reality, the Palestinians have never been a military problem for Israel, they have been a political problem (and a moral one because, unlike it's enemies, most Israelis do not long to kill Palestinians the way Palestinians long to exterminate the Jews) . In an all out conflict, Israel would crush the Gaza in very short order and the territories soon after.
It is becoming clear to Israelis that the Arab world is dealing in bad faith and there will never be a political solution with the Palestinian because what is really desired is the destruction of Israel.
It's only a matter of time before Israel's enemies move to destroy it.
Recent events in the region have made this even clearer.
Once this is understood, all else follows.
Israel has shown serious restraint since at least the 1973 conflict, but next time around Israel's enemies may find that Israel no longer can afford the luxury of restraint and measured response, and will instead be forced to take decisive action.
When basic survival is at stake, people tend to do what they have to to survive and deal with the consequences afterwards.