It doesn’t matter if there is less conflict in the Gaza Strip. So long as there is conflict, Israel is wasting resources defending these settlements, when they could be defending less contentious parts of Israel.
Agreed that the Palestinians haven’t shown much inclination to be happy with what they did have, but believe or not some Arab countries do now at least recognise Israel, and if the Palestinians get something workable increasing numbers of them might too. I realise that is a ‘might’, but as I say, if the pullout does not happen there will never be peace; that is a certainty.
If by "some" you mean 2, then yes "some" do recognize Israel. The others still allow little or no trade with Israel and some go so far as to deny entry to their country if a person has an Israeli stamp in their passport. Obviously a lot of progress has been made in 50 years.