The problem with understanding this situation is that it probably has more to do with Israel's internal politics than what the situation looks like on the ground in Gaza and elsewhere. Just a quick read from the wikipedia page should give an idea just how corrupt the situation really is.
There's also the fact that Palestinians aren't a homogenous group in any sense of the word. That makes it hard for them to unite under any political flag. It also doesn't help that the borders are all closed, from both sides, and no neighboring country are willing to accept them.
From the outside the situation certainly looks very bleak.