I think Palestinian deaths v. Israeli deaths is roughly 20 to 1. Sure, Hamas shouldn't be firing rockets into Israel and the eradication of Israel shouldn't be a goal. But, Israel has the Iron Dome and the Palestinians are sitting ducks in Gaza. Israel certainly has the goal of eradicating the Palestinian state and has done a pretty good job of it.
I think the US and Native American situation is a good analogy. The US won the land through war and conquest. However, the US gave Native Americans some land, Native Americans are free to live anywhere in the US, and Native Americans are US citizens with rights and the ability to pursue happiness.
Israel needs to give Palestinians the West Bank minus Jerusalem and Gaza. The West Bank used to be Jordan and Gaza used to be Egypt: it is not like they were ever supposed to be part of Israel. Jerusalem needs to be a neutral city governed by some sort of agreement. Once Palestinians get some land, rights, better standard of living, and Israel starts to treat them like human beings, then I'm guessing things will improve. Will Israel always have enemies? Sure, but I think most of the neighboring Arab nations respect Israel's strength and haven't tried to go to actual war with them in a long time.