Let's discuss another place inside of Palestine where there is an opportunity for peace; the West bank ruled by the Fatah government, which recognizes "Israel". They also have no weapons that they can realistically use against settlers and the invading army.
Here's what happens in the West bank, settlements exist in the West bank, settlers murder people in the West bank, and the police are protecting settlers while they're doing it.
Gaza once was under the control of the PLO and Fatah, and there could've been peace, if not for Isn'trael opting to keep building settlements, encouraging people who're being forced out of their homes to pick the more violent approach of Hamas. Which unlike negotiating with an occupying force, did get them to dismantle their disgusting settlements and leave to avoid losing more soldiers.