“He ultimately believes that economic development will turn enemies into at least neutrals.”
I saw him 20 years ago, when he was stuck having to deal with Clinton, he is not dumb - he knew EVEN THEN that you cannot have land for peace with people out to kill you and still indoctrinating their children to do the same. The agreements they reached with the PLO REQUIRED that Jews be presented as human beings to Palestinian school children (i.e., the Hamas fighters they’re dealing with today) - but that was too much for Araphat to stomach, so they kept the Nazi-style propaganda going (i.e., Jews are monkeys, pigs, etc.), while JUST ABOUT EVERYONE simply ignored that end of things (including, later, Bush-43)...except Bibi - he kept pointing that out, over and over.
He knows who he’s dealing with and knows them VERY WELL.
Netanyahu has a history. Hebron in 1997. Cast Lead just a few years ago.