When your very existence is on the line it is a different matter. What you fail to understand is that it takes 2 sides to make peace. If the other side denies you the right to exist, you can try as hard as you want peace is not going to happen. You dismiss my concerns, however, look at the change that has occurred in the US after one lone terrorist attack. Now imagine, this happening over and over again for 50 years after a history of 2000 years of persecution.
What is your solution, what should Israel do?