Taking land to make distance from the people trying to murder them for 70 years. Making a massive security apparatus to protect themselves from the people trying to murder them for 70 years.
If Arab nationalists and Palestinians weren't trying to murder Jews, none of this would have happened, they seem addicted to it. This war could be over tomorrow if they released the hostages and surrendered, but clearly they prefer violence against Jews to peace.
If you want to know why they're in enclaves and why they don't have many freedoms, it's because of all the Jew murdering and refusal to pacify themselves. They want unreasonable unattainable goals, to destroy Israel and take all their land, and they are willing to employ violence until they get it, which means violence forever evidently.
Choosing violence when you can't win by violence is a bad idea.