I put the primary emphasis on what the Israeli government needs to do because it's THAT government which is the hegemon (the dominant side) in this conflict.
The conflict goes on largely because the Israeli government refuses to stop collectively persecuting ALL Palestinians, stop holding ALL Palestinians responsible for the actions of the armed factions- even though the vast majority of ordinary Palestinians have no connection to those factions and no possible means of doing anything to control them- and refuses to stop assigning ALL the blame for the conflict to the supposed bigotry of the other side, while simultaneously denying that the other side has any valid grievances or, it appears, any humanity.
In basic terms, you don't hold the oppressed side to the same standards of the oppressor- and Israel is the oppressor in terms of the overall conflict- since 2001, it's leadership has mainly been fixated on making the creation of any real Palestinian state- it wouldn't be a real state if it was just a set of tiny, pitiful, disconnected cantons surrounded by perpetually expanding West Bank settlements, with Palestinians forced to spend hours in line at Israeli checkpoints simply to pass from canton to canton. A Palestinian state MUST be allowed to be economically sustainable, contiguous, and be allowed international prestige- any state that is designed- as anything Netanyahu or, quite frankly, the "moderate" opposition parties brought in most likely would be- to be a humiliation to any Palestinian leader who negotiated with Israel- would be doomed to failure. Why insist on humiliation, as Netanyahu and the "moderate" opposition parties do, when humiliation guarantees failure? Why insist on doing what CAN'T work?
And quite frankly, it's NOT true that nobody on the Palestinian side agreed to accept that "Israel is here to stay"- even Hamas' "hudna" proposal effectively does that, since it would be essentially a permanent truce, which is effectively the same as peace.
In the Oslo era- which was supposed to culminate with Palestinians actually getting a state, a state with no Israeli troops patrolling its street beating people- the PLO DID accept that Israel was here to stay in the 1990s. It recognized the state, and that's the same thing as recognizing it was here to stay. The PLO got NOTHING for all it did to try and work with Israel in those years- except for sabotage from Netanyahu- who spent years "bolstering Hamas"- his words, said to his own MKs- just to "thwart a two-state solution".
Netanyahu rode this arrogant, essentially anti-Israel, essentially anti-JEWISH strategy to political dominance- he essentially became premier for life- by sabotaging the two-state solution, the only possible way to end the Israel/Palestine conflict, in order to push what he knew all along was a hopeless, doomed strategy of trying to end it by making Palestinians to surrender not only in their struggle for self-determination- a just struggle- but essentially state that their identity AS Palestinians was and is bogus- which is something nobody has any right to demand- and then for the Arabs to say something like "ok, we admit that there was never any such thing as a Palestinian, that the people who called themselves that were and are just "generic Arabs" who should just have placidly agreed to move to Beirut or Amman or Cairo or maybe Rabat, who never had any connection to THESE lands and no right to be here, and we also admit that they and we were just Nazis with suntans and the conflict was never about anything but "hating Jews", even though Netanyahu himself had to have known that he had no right to demand that Palestinians and Arabs(who are actually different groups ethnically, since many Palestinians are actually descendants of the ancient Israelites whose own ancestors later converted to Christianity or Islam) renounce their reality.
I have little use for EITHER leadership, but there is less the leadership of the oppressed side can be asked to do than can the leadership of the oppressor side.
And Israel wouldn't be having to deal with Hamas if Netanyahu hadn't been obsessed with sidelining the PLO and preventing ANY Palestinian state from ever being created.