So, should they do these things in the ABSENCE of a negotiated peace agreement, while Arabs in the territories are openly at war with them? You have noticed that Israel has made extraordinary efforts to conclude final status negotiations under Oslo, right, only answered with violence and murder? Apparently not, or you think they should capitulate to murder, and have no right to peace in exchange for land.
Yes! Israel should stop trying to crush the Palestinians and get the hell out of the occupied territories. It should also end all forms of discrimination against Palestinians and welcome all Palestinian refugees who wish to return to Israel. Under those conditions, it wouldn't be hard for Israel to make peace with the Palestinians.