And yet, it's true. Are the Palestinians better off now? Are they likely to get a country via war? Nope.
They squandered their best opportunity, and they are unlikely to ever get it again.
You started this chain by saying Israel has done everything except try for peace and I think I've pretty conclusively proven that that is simply not true. Israel has tried, but Palestinians are unwilling to accept anything less than everything.
If you look into the history of settlements in the West Bank, the picture gets a bit more complex than "Israel has tried".