Israel has actively promoted a split in Palestinian leadership for years. The Israelis funded and promoted Hamas secreted in its early years as competition for the PLO. In the moments when they want a unified gov't in Ramallah this hurts them.
Gaza will now be what was somewhat designed to be: a very large prison. I feel sorry for the significant numbers of normal, Palenstians who want peace and will be stuck there under worsing conditions as the Israelis limit all non-essentials going to Gaza to pressure Hamas, and limited their ability to hurt the border towns. They control by treaty the water rights, sea rights, air space, and borders.
I am not hopeful, but perhaps Israel would be willing to do aggressive land swaps for the territory they want to keep with the large settlements, and you could get a vaguely viable state. But you will still have the Jerusalem issue, which Israel will never give on now, and the refugees. Who will need to get some type of permanent status if they will not be able to return to a Palenstian state. But Israel did not give up Gaza out of kindness, they gave it up because of the demographic time bomb it represented. Israel's nightmare is that the Palenstians give up on a state and say fine, we can't have a viable state anymore, just give us the vote, we'll be part of Israel. But Israel has a nightmare now with Gaza, and I think they will have to do more military ops there over time.
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