IMHO the biggest obstacle to peace is not inherent in either side’s current actions. It is the refusal of other governments to acknowledge the blatantly obvious:
1) The Golan Heights and Jerusalem are now fully integrated, and inseparable from the State of Israel. This needs to be formally recognized, preferably by the UN, and by all Western nations.
and (the flip side)
2) The Palestinians WILL have a FULLY sovereign state in the West Bank and Gaza. This too needs to be formally recognized by the UN and all Western Nations.
Ideally this would be pushed forward as a joint motion. Whatever else is on or off the table, these two positions represent so-called red lines for both parties, and no attempt to bring them together will succeed unless the red-lines of both parties are integrated into it.