646 your arguments do not stand.
1. In case you forgot, we have been attacked by all those countries in the past, even though it was suicidal (read up on the 6 day war a bit). It took Jordan and Egypt a long time to change their tune, and now I suspect they can maintain the cold peace only because there are others who are willing to take up the cause for them. They are not exactly our friends and allies. Meanwhile, there is a very real threat of a war breaking out in the North right now. Another war- seems that the threat of Israel bombing them to oblivion- or the fact that they have done so in the recent past- has not stopped the sovereign states of Lebanon and Syria. Iran does not have to send its missiles at us from Tehran because it uses Hezbollah and now Syria as proxies. That way Israel shoots back at someone else. If there was a Palestinian state, they would be exporting there as well. It’s also a lot easier to get away with shooting short-range homemade missiles and kite bombs than long-range missiles, which can be done from Gaza/the West Bank, which is less likely to risk what the world likes to call a “disproportionate response”.
2. Even if there was a state, the Palestinians would still be living in a situation where they have nothing to lose. Their leaders are not interested in building infrastructure and creating a vibrant economy. That is a liberal myth. Just look at the facts. Look at Gaza and what they did to what remained behind in Gush Katif after the withdrawal. Look at the funds that the EU etc sends them that goes to building terrorist tunnels, not desperately needed housing or hospitals. There’s a reason that Trump cut off funding to the PA. The corrupt PA will take everything for themselves and leave their people as victims. And they’ll still find a way to blame to Jews for their problems.
3. Gaza has complete autonomy now, with its own government. But the people are still in bad shape, their only focus is on terrorism. You’ll say it’s because of the blockade, because Israel does not let it control its own borders. But that would inevitably be what would happen to any state in the West bank too, or else Israel would be risking suicide. A state would have to be de-militarized and border-points would have to be monitored to prevent weapons being passed in and terrorists being passed out. Do not kid yourself that these people will realize that normalizing relations will improve their lives and that continuing on their path of terror would be suicidal. They have had nearly 30 years to realize this. And they are still teaching their kids to hate all Israelis and to dream of a Judenrein Palestine from river to sea. Reality is that your plan would not work. Not in the current environment with the Arab leadership as it is.
4. You started out saying the problem was that Israel took over the West Bank and Gaza in 1967, took away their right to self-control etc by not making them citizens or giving them independence. Which as others pointed out, they never had- they were always ruled by others. Now you state that the problem started in 1948 with the people doing something – i.e. founding of the state of Israel. Which means that you have a problem, not just with Israel ruling over the Palestinians, but with the fact that they rule over themselves. Sounds like you are for a 1 state solution afterall- and not one that includes Israel. Then you go on to state that the problem actually started much earlier, when Jews started coming back to the area even before 1948. So your problem is with the Jews being in E”Y at all… funny, that’s what the Arabs find problematic as well.
We are as likely to stop Arab hatred of us by giving them a state in the West Bank as we were able to stop European anti-semitism by assimilation, or by leaving Europe and getting a state of our own. By the way, I remember when people were so worried about the demographics and maintaining a Jewish majority in Israel in the face of a growing Israeli Arab birthrate. Then the iron curtain fell and a million Russians arrived. Even without them all actually being Jewish, it changed the whole equation. Which is why I prefer to leaving the problem solving up to Hashem and not Netanyahu or the Labor Left or Trump or you.