Can tiny Israel afford to give away land to try to placate the Arabs? Compare Israel to Iraq, just one of the many Arab countries near Israel.

Israel + administrated territories: 27,869 sq. km / 10,760 sq. mi
Ratio, Iraq to Israel: 15.7:1
Iraq is one of many Arab nations that has been hostile to Israel since the founding of the state. Iraq fought against Israel in 3 of the Arab-Israeli wars and launched missiles against Israel in the first Gulf War, despite Israel not being a party to that conflict.