According to Pan-Arabist Gamal Abdel Nasser, «to unite, Arabs are due one common enemy, and this enemy is Israel». Other Arab nationalists have adopted Nasser’s formula. Saddam Hussein, Muammar Qaddafi, Asad the Dad, etc etc. Currently, islamists «stole» the formula (quote from King Abdallah of Jordan), therefore nationalists try reconciliation with the Jewish state. Whole Palestinian game is to interfere with Arab nationalist plans regarding Israel. Therefore HAMAS succeeded to «stole» influence from FATAH. They tied themselves with Iran islamists, playing antisemitic card which they consider «trump card». However, last riots in Iran discover, that benefit from anti-Semitism may come to an end.
UN Security council resolution 242 doesn’t require the return to 1949 lines! Actually, the UNGA resolution from November 2017 neglects this 242 resolution and 1947 Partition resolution. And human rights of the Jews who settled in Palestine/Judea&Samaria. If the Palestinians are eager to return to 1949 lines, they should grant Palestinian citizenship to the Jews living in the territory, which they claim. The Palestinians reject such solution and any other just and natural solution, including land swaps, because of they seek the «solution» of HAMAS and Iran, that is annihilation of Israel and genocide of the Jews. The «settlements», Jerusalem and borders are simply pretext to continue war against the Jews up to complete genocide. In other words, the Palestinians exploit World’s and Middle Eastern antisemitism with the purpose to annihilate the Jews, or at least to force unacceptable antisemitic «solution» without peace.
The «Peace in exchange for territories» experiment was already performed. After complete, one-sided Israel’s withdrawal from Gaza, including destruction of Jewish villages and expelling of the Jews, HAMAS won the elections and consumed popular mandate in Gaza. Simply, the Palestinians voted for annihilation of Israel, which promised (and continues to promise) HAMAS.
History of Jewish-Palestinian conflict is much longer, than you imagine. In the course of 1000 years the Jews were doomed to be victims of Palestinians, and the Palestinians got used to such relations, they cannot accept the change. Especially when antisemitic World and Islam encourage their most extremist aspirations.
For last thousand years Jews weren’t allowed to return to the Holy land. Britons simply copied Ottoman Turks’ suppression of the Jewish aliya. Therefore, we learned to do this against the will of antisemites. Including Palestine antisemites, who participated antisemitic policies of various rulers.
Trump has realized, that the peace in the Middle East is achievable only due to pressure on Palestinians and Iran.