The only thing about that is that it’s ISRAEL who wants the land to be given to the Palestinians, for a Palestinian state. Israel wants that more than the Palestinians do ... :-) ...
The reason why is if Israel incorporates all that land into the nation of Israel the numbers of Muslims that are there will turn Israel instantly into an ARAB STATE.
That’s what Israel wants to avoid at all costs and that’s why Israel does NOT WANT the land where millions of Arabs are residing right now.
Incorporating the land is not the same as incorporating the people who currently dwell on the land, and use it as a staging area to attack you.
In response to attacks, if Israel was just to take a piece of land in retaliation, and if anyone lives there, tell them to move into Arab territory, the situation would solve itself. Either the Arabs would be peaceful, or they would become citizens of Egypt and Jordan.