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No one is arguing that Israel should 'lay down their weapons' here. What people are arguing is that Israel is colonizing and working against the cause of 'peace' as laughable a notion that is.
Actually you are. You constantly confuse Hamas and Fatah and their respective situations. The current violence is between Hamas and Israel, Fatah has stayed out of it. The violence IS NOT caused by Israeli settling in Area C. Earlier I explained that Fatah and Hamas use different definitions of "settlements". The people causing the violence, Hamas, will not stop their rocket attacks until every last Jew is dead. There can be no peace with Hamas as long as that is their platform, which is also the platform which got the elected and popular support.
There is no violence between Fatah and Israel. The PA (Fatah) has valid concerns about land rights between them and Israel. If you were to pull your head out of your fourth point of contact and study the population map I posted earlier you would see that large amounts of area are still being negotiated (Area C, the white area). Fatah maintains control over Area's A and B (Dark and light Brown). Most of the arguing is actually over water rights and which group of people gets to use it.
The take away is that Israeli settlements in the disputed (as in nobody owns it) Area C is not a cause for the current violence, it isn't even a contributing factor as Hamas would be killing Jews as long as they are breathing. You were wrong about the blockade as you are with many other things. The blockade of Gaza had no effect on the west bank as they receive all their goods and services via open roads. The blockade was in response to, not a precipitate of, the violence from Gaza. The low quality of life conditions are again not caused by the Israeli government. The Palestinian Authority has administrative control, which includes taxes and services, for those area's where Palestinian's are settled. Israel is responsible for area's where Israeli's are settled. Israel has more money then the Palestinian Authority and Israeli's have better education then Palestinian's. This results in Israeli communities having a better standard of living then Palestinian communities. This is not the fault of the Israelis. Hopefully in time the Palestinians' will develop their own economy and then education and quality of life will improve.
Yes there are some extreme fanatical Zionists, they compromise the hard right political party in Israel. The more moderate party, which the majority of Israeli's support, are not Zionists and have a very even handed approach to things. Also your inventing a bond villain (rich high ranking Zionist secretly pulling strings to oppress the poor Palestinians). The Zionists just believe that the right place for Jewish people to live is their original homeland, which is the ancient land of Israel and Judea (which doesn't include the Gaza strip btw).
In all case's the entire reason that Israel was formed was because
nobody wanted them. That hasn't changed. No other country would take them, that includes the USA. Even if you wanted to "relocate" them again, there isn't a place that would give them land. You would have to take that land from someone else. Putting them in the Mandate was out of sheer political expediency, a land that nobody wanted and nobody controlled was perfect for a people that nobody wanted.
Now we can argue and debate whether it was a good idea or not, and personally I'm of the "or not" variety, but it's long since gone and won't effect the current problem.