I'm sorry man, you're absolutely wrong. Ultimately what did create Israel was their victory in the 1948 War for Independence (and many others wars that followed). Had they lost, there would be no Israel. They won and thus there is an Israel, defined by their choice of borders not the U.N's. There are really no two ways to say this.
If the palestinians didn't behave like animals, they would not be treated like animals. No one doubts that if tomorrow the palestinians put down their arms and elected a peaceful leader, every checkpoint would be removed and not a single home would ever again be demolished. Israel would even re-withdraw from Gaza and according to Olmert even the West Bank, giving them for the first time in history, a state of their own. Israel has no interest in these shithole pieces of land, other than as security buffers. Instead they voluntarily choose to behave like animals, worse than ever even, and thus will continue to live lives under military authority.