They rejected the Israeli state in present day Israel And 1948 boundaries. I so want to believe that if they just accept it, all will be great. It sounds too simple.  

They need great leaders and the ability / resources and global support to use their demographics to educate themselves to be a prosperous nation (like Singapore).  

It truly saddens me that with all the aid and resources they receive, they tend to spend it on (or maybe instead of receiving aid, they receive) missiles, tunnels, etc. instead of things that will help them get out of poverty. 

Maybe I am being idealistic and they are being kept down in the dumps by Israel and the West as well as their “friendly neighbors” like Iran.  

If it were as simple as saying, “if they just accepted Israel as a State” we would have peace, then why don’t we have peace in Ukraine or elsewhere?  There are always plenty of bad actors and mobs / crowd mentality make it worse.