Nation building is no match for what TOTALITARIANS have built.
Yasser Arafat and the PLO were a criminal international terrorist organization with more in common with the Mafia than a legit government.
More importantly , very few in the PLO had any real connection to the land Palestine and were free booting terrorist mercenaries from places like Egypt, Jordan, Syria and Lebanon funded by Soviet money to stir up trouble in the West.
Had Israel been able to work with people who were actually residents of the territories who had a vested interest in Peace and stability as opposed to Yasser Arafat and his PLO which had a vested interesting in terrorism, anarchy and criminality things would have been much different. .
if you think about it, most of the worlds problems and strife are the results of 4 people - Jimmy Carter, Bill Clinton, Barak Obama and Joe Biden. It's really hard to tell which one was worse.