I admire your optimism, I really do. When imagining a reality where Israel opens its borders to Gaza, what I see is Israel descended into a warzone - hundreds of thousands of dead Israelis, slaughtered in schools, homes, streets and hospitals in the name of muslim holy war, jewish genocide and the mantra of Palestine “from the river to the sea”.
It’s an entirely different situation in the West Bank, which some might consider odd, given that Gaza has essentially been a sovereign state, whilst the W.B has been under tight Israeli control. The W.B Palestinians have amongst the highest living standards in the entire Middle East, with schools, universities, internet and TVs. Indeed, it is quite possible that the situation in Gaza would’ve been far better had Israel not withdrawn in '05, but it is hard to make predictions about alternate timelines.
I think it has been very clear what Israel wants from peace, in fact they’ve already made it once, with Egypt. In exchange for recognition, the promise of peace and a few other concessions, they ceded an area of land larger than modern-day Israel.
That is the key point that palestinian leadership has never been willing to offer in negotiation - recognition of Israel (as rightful owner of its territories) and the promise of peace (officially renouncing any claims over those same territories).