Palestinians and Israelis are essentially at parity in Israel, and Palestinians’ far higher birth rates will soon put them in the majority. Unless the Israelis kick them out. From Mike Whitney at unz.com:

We’ve been told repeatedly that the goal of Israel’s operation in Gaza is to “defeat Hamas”. But is that true? We don’t think it is. We don’t think that any reasonable person would attempt to eradicate a militant organization by laying to waste vast swaths of the country while killing tens of thousands of innocent people. That is not how one garners support for one’s cause nor is it an effective strategy for defeating the enemy. Instead, it is a policy that is guaranteed to horrify allies and critics alike greatly undermining the operation’s chances of success. And that’s why we don’t believe that Israel’s attack on Gaza has anything to do with Hamas. We think it’s a smokescreen that’s being used to divert attention from the real objectives of the campaign.
And, what might those “real objectives” be?
The real objectives relate to an issue that is never discussed in the media, but is the primary factor driving events. Demographics.
As we all know, Israel’s long-term plan is to incorporate Gaza and the West Bank into Greater Israel. They want to control all the land from the Jordan River to the Mediterranean Sea. The problem is, however, that if they annex the occupied territories without disposing of the people, then the Palestinian population will equal or exceed that of the Jews which would lead to the demise of the Jewish state. That is the basic problem in a nutshell. Check out this article that helps to explain what’s going on:
Demography is a matter of national security in Israel and a key indicator for Israeli-Palestinian relations and their outlook: demographic trends in Israel are rapidly shifting and this will impact prospects for violence and conflict resolution.