I agree that Hamas is a response to conditions. I do recall that a long while ago, Israel did fund Hamas, in hope of counterbalancing Fatah.

But, just like many other movements, Hamas seems to perpetuate the conditions which created it. Their rule is Gaza hasn't only brought a war with Israel, but also a suppression of democracy and repression of people from competing Palestinian movements (mainly Fatah).

Israeli forces do often act like they're a recruitment branch of Hamas, stirring up anger. I don't doubt it the slightest that Hamas has received many recruits because the IDF again killed someone who randomly got in their way (or again made the calculation that for a junior Hamas official, 15 civilian lives are OK to take).

But, despite knowing the above-mentioned - I don't see a way out of the long-term conflict without both sides changing.

As long as Israel behaves like it wants to destroy (or drive away) all Palestinians - there will be Palestinian politicians who call for the destruction of Israel and support terrorist tactics, with considerable support among the population, even if their rule is not democratic (the rule of Hamas in Gaza only started democratically). Meanwhile, fear of revenge and terror, fear of appearing weak and another Arab-Israeli war - this ensures that politicians in Israel who promise to deal harshly with Palestinians get votes and frequently attain power.

Since the conflict is now quite old (at least 70 years) and the fighting parties have lost a viable framework for solving it, they need either massive luck or considerable foreign assistance / advise / pressure to find a stable solution.

Re: one state solution: did you mean two state solution? Because I think - but I could be wrong - that Israel must somehow come to the point of understanding that a Palestinian state with a reasonably defined territory (not a patchwork-of-enclaves territory) can be their neighbour, but the current situation is unstable.