Why can't Israel and Palestine live in peace, side by side, in your opinion?

In my opinion (for what it's worth) The state of Israel was set up after WW11 on what the Palestinians considered their land. The Palestinians fought back the only way they could with terrorist attacks. The Israelis hit back by taking more of Palestine and setting up Jewish settlements. The Israelis keep pushing the Palestinians with the backing of the US government due to the strong Jewish lobby in the Senate. I'm sure this answer will get a few thumbs down.