Israel should not be running the world's largest outdoor prison, and then cutting off access to food, fuel, medical supplies, and other minimal requirements for the survival of the Palestinians. Here's a crazy thought: people who are being starved, and who are watching their children being starved, might not be especially interested in peace with the people starving them. 

Israel should also consider that an average of two deaths by rocket fire per year are not justification for the destruction of Palestinian schools, hospitals, and general infrastructure in violation of international law. In the civilized world (which Israel cannot be counted as part of) when there's a shooting we don't respond by blowing up the neighborhood where the shooter lives. When there's a murder we don't blow up the hospital near the murderer's home.