The Palestinains can't dissent. Anyone who does is butchered. I really think if the Israelis would just not react to a couple of terror bombings and instead proclaim that they will refrain from action in the hope of peace that it might have an effect on the Palestinians themselves. Perhaps some other actions like stopping the settlements and removing several of them? What would be the propaganda effect among the Palestinians who are cowed into submission to the more radical among them? Right now there appears to be zero "middle ground" among Palestinians except annihilation of Israel.
Never going to happen, nor should it. Chamberlain tried that on a larger scale with Hitler...you have been describing where it led.
It's a terrible situation. My feeling is that the Palestinian people themselves must step up to the bar and take the risk. The butchery they face for dissent comes from their own ranks. They must take great risks to purchase liberty, and those risks must be against (IMHO) the real source of their tyranny, which resides amongst themselves. It that were to happen, I believe they would get all of the help they would need.
The hard truth may be, that like your suggestion with Israel just "taking" a few terror attacks...it is not likely to happen.