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Good post. And welcome to FR.

the Israelis have grown used to the subsidy and don’t want to give it up.

Maybe some have. To say there's a majority? I dunno. This is a matter of the differences between Israeli citizens and the Israeli ruling elites who don't always pay attention to their own citizens (see our own recent Shamnesty meltdown for how it occurs here).

Netanyahu tried to wean them off this years ago knowing full well that its acceptance would eventually lead to them having to accept a peace accord to satisfy US interests

I think he may get back to office again. Too talented for his career to be over yet.

As for a peace accord to satisfy US interests, a lot of people don't recognize that a key bloc in forcing these bad policies on Israel is the influence of the American Jewish community who tend to rally around and vote for Dims. So while the worst of these policies are advocated by Dim politicians, they are actually acting on behalf of and in agreement with a narrow segment of the American Jewish community. The majority of American Jews are not as pro-Israel as some people think and they think we meddle too much there, send too much aid, send too many weapons, etc. Of course, as with any topic involving Jews, you'll find almost as many completely different opinions as you can find Jews. Honestly, I do wonder how they ever reach consensus on anything because they have such an extremely wide range of views on these matters and about Israel most of all. I have to admit, as a Gentile, trying to parse Israeli Jews vs. American Jews and all their various factions and political connections is just too confusing. I found an article by a Jewish writer at Time a while back that detailed the incredible mix of views and politics and interconnections in the relations between the leadership of Israel and Israeli citizens and the leadership of American Jewish organizations and Jewish Americans and all the interconnections. I have to admit, I think I was more confused after reading it and it was a great article too, long and detailed.

Sometimes I wonder how we're supposed to make American and Israeli Jews happy with any solution. I think we should let them work it out. Same thing with Israeli Jews and the Palis (and I think the Israeli Jews should tell the American Jews to butt out of internal Israeli security matters and stop forcing them to negotiate with terrorists and having to accept fake peace accords). If American Jews want to determine Israeli security policy, then they should move there, serve in their armed forces and live there. It's awfully easy to dictate these awful compromises to Israeli Jews when you aren't the one who has to live there with the dangers of terrorism and surrounded by millions of hostile Muslims who have genocidal intent toward you for being a Jew.