Can tiny Israel afford to give away land to try to placate the Arabs? Compare Israel’s size to wealthy Kuwait, just one of many Arab countries near Israel:
Israel + administrated territories: 27,869 sq. km / 10,760 sq. mi
Ratio, Kuwait to Israel: 1:1.6
Kuwait is only slightly smaller than the State of Israel. However, in 1990 Kuwait was overrun and occupied by Iraq in just 2 days. Iraq is one of many Arab nations hostile to Israel, having fought in 3 of the Arab-Israeli wars and having launched missiles against Israel in the first Gulf War, despite Israel not being a party to that conflict.