I'm speaking solely to the facts on the ground.

Regardless of anyone's thoughts on the matter, Israel does hold all the guns here. Rights and privileges mean as much as the paper they're printed on. In a perfect world, Israel and Palestine would exist side by side as peaceful partners, each with fully fledged institutions and militaries and all that jazz. But unless Israel is confident that a Palestinian military won't have its destruction as its primary goal, it will not allow that to happen, no matter how much pontificating about rights and narratives and double standards anyone does. I'm not trying to talk about who's "right", whatever that even means. I'm talking about the actual situation and what will actually happen, regardless of anyone's opinions on the matter.

When a country has such a consistent history, it’s rational to believe that they will continue annexing Palestinian lands

And an Israeli would say that Palestinians have a consistent history of attempting to murder Israeli civilians and so it is rational to never allow them to build up any military power, and thus the circus goes round. My point is that no amount of moral superiority means very much if you don't have actual power to go along with it, and Palestinians simply do not. If the goal is actually to develop a real peace rather than avenge any sins of the past, both sides will have to give up on prior grievances and decide that they care more about the lives of their children than their own pride. It's hard to imagine the situation being much worse than it already is (though I'm sure it'll find a way)