Here's a fascinating discussion, titled "The Real Roots of Palestinian Terror," on FrontPage Magazine, that discusses a study that shows widespread child abuse as at least partially responsible for the incessent violence.
Apart from cynical (appeasing Saudi and other Arab oil power) and realpolitik (trying to concoct a Sunni coalition against Iran) motives, all the Western bigwigs could not invest so much time and prestige in this issue without some genuine belief that it is resolvable. If the Palestinians’ problem is not Israeli occupation (totally removed in Gaza and partially in the West Bank) or settlements (totally destroyed in Gaza), then it must be weak institutions, or not enough guns for Fatah, or not enough Arab states present at the latest convocation with Israel.
And so if it's not really the Israeli occupation (because that no longer really exists), nor the other reasons listed, then what is it? The story speculates:
The physician and researcher Daphne Burdman, writing in the Jewish Political Studies Review, says the Palestinians’ ongoing aggression toward Israel and Jews results from Koranic and Hadith teachings, the PA’s own brand of systematic indoctrination and incitement, and “psychological processes arising from Arab childrearing practices.” The first two factors are more familiar than the third, which requires much more attention from people concerned about this conflict.
The story goes on to say how because of the collectivist nature of Arab societies, the abused child, once grown, strikes out not against society at large, as in individualistic societies, but against the "enemy" about whom the child was indoctrinated against. Hence, the hatred and violence against the Jew and against Israel.
It makes a sort of horrid sense, and if true, then it makes even more pertinent Ayn Rand's position that cultures are defined by their underlying philosophies (in this case, at least in part) collectivist vs. individualist, and that issues such as the Israeli/Palestinian conflict will never be resolved until the irrational side becomes rational.
Given the current state of Palestine and the West's own mixed philosophy, however, I find that a dubious proposition at best.