You specifically mentioned the netanyahu government.
But this is not a lose lose for Israeli civilians either, not the least important reason being that all israeli citizens are required to be part of the military for 2 years, and many of them have partisan objections against a Palestinian state reinforced by their military and government.
This is a lose for Palestinian civilians who were trying to establish a state for 70 years.
And a win for Israel.
Israeli citizens have been colonizing the West Bank for decades; with Palestinian territories physically destroyed, it will be much easier for them to continue their colonization.