I know that it's a very unusual question, but seriously, does Israel have anything to gain from peace? Do the Fatah movement and al-Aqsa Brigades, Hamas, the Islamic Jihad and the PFLP have anything to gain from peace? In short, do ANY of the power brokers in the region really have anything to gain from peace? Aren't the sides waiting for something to happen so they can plan massive reprisals? I think Israel is waiting for a particularly nasty uprising, the Palestinians are waiting for Arafat to be killed, and both sides are hoping it will happen SOON so that they can go on a rampage.

Yes, I would say that is the possible mentality of interested parties within that region. The interests of the wolrd and that of ordinary people within that area lie in peace and preventing pointless bloodshed. We can't simply abandon a push for peace just because others have decided to accustom themselves (unnecessarily) to war.

War CAN go on for decades. There was even a Hundred Years' War, of course.

From the incredibly little that I know abou that, that fighting was intermittent and it did not last forever. Was that much gained by any side in fight (the English were repulsed from most of their gains in the end, right)?

I agree that the PEOPLE of Israel and Palestine probably both WANT peace. The question is whether the people who hold power want or need it. I think that the answer to both questions on both sides is no, and until that changes, there will never be peace.

You're right. That's why everybody who wants peace must push for peace. And that can only be encouraging by external force by applying diplomatic pressure and encouraging peace activists and peaceful social intitiatives on both sides.