The conflict against the Palestinians is largely because of Israeli settlers establishing towns in disputed territories. The Israelis have created fences and walls and boundaries and made daily life very difficult for Palestinians. Restrictions on travel have contributed to the Palestinian unemployment rate of nearly fifty percent. The Israelis have shown very little willingness to negotiate or to assist the Palestinians. They show little compassion to the Palestinians and draw stark cultural lines between the two groups.
The territory annexed to Israel was originally occupied by Palestinians, and when it was given over to the Israelis, those in power saw it fit to exasperate already high tensions by encroaching further and further into the territory that the Palestinians still held, making it smaller and slowly destroying their way of life.
The Palestinians waged a war of terror, continuously, for more than four decades now, a part of their leaders have decided to try to make peace with Israel, but the other part keep waging war against the only democracy in the Middle East, where by the way, the local Bedouin Muslim population has been treated exceptionally well by the Israeli government (so they cannot be accused of being anti-Arab, or anti-Muslim).
I think that it is also important to mention that Hamas is a terrorist organization, like ISIS, with a genocidal agenda, they want to create a theocratic Muslim state and expel all the Jews from Israel, following the steps of every other Muslim country. The West Bank was taken from Jordan in the Six Days War, not from an independent Palestinian State (Egypt and Jordan made sure that such a state didn't come into existence in the war in '47).
Israel is only waging a defensive war against Hamas and the latter keep breaking every single armistice and truce.
Israel is small strip of land that many people want to hold. I do not think you can solely blame the continued fighting on the Israelis or the Palestinians. Part of it is about their culture and part of it comes from their past. They've grown up with this conflict and it is simply likely to continue. It's doubtful there is a single resolution that would completely end fighting in this area.
It is my opinion that the Israelis are not solely responsible for the ongoing impact with the Palestinians. This conflict has been being waged for centuries, and the blame cannot be cast with one side or the other. Both nations have been equally responsible for the continuing conflict over who has the right to claim the land between them.