As is true of any country, especially a parliamentary democracy, Israel's actions are less the result of a single calculated strategy than they are about messy internal politics, short-term thinking, and strategic drift. Take, as a micro example,
Israel's approach to Gaza since Hamas took over in 2006. Israel has invaded or launched extended bombing campaigns in Gaza every few years; this costs many Israeli lives, in addition to the much higher Palestinian death toll, and it never actually solves the underlying problems. Clearly Israel does not have long-term strategy here at all, much less a nefarious secret plan. That lack of a strategy is bad and helps perpetuate the cycle of violence, but it is a cycle that's painful for Israelis, as well.
Israeli policy has changed over time; just like American politics, it has been different depending on who is leading the government. In the early 1990s, Israeli Prime Minister Yitzhak Rabin signed a peace deal with the Palestinians, even though Israel's concessions for the deal were so unpopular among Israelis that a far-right extremist assassinated Rabin. In 2008, Prime Minister Ehud Olmert
offered the Palestinians a two-state peace deal. There were valid reasons the offer failed (Nathan Thrall has written
a good history of what happened), but the point is that Israel would not have offered this plan if it secretly desired the permanent occupation of the West Bank.
There are certainly extremists in Israeli politics — sometimes quite
prominent extremists — who want to permanently annex the West Bank and make Palestinians second-class citizens, or to systemically expel Palestinians from their land en masse in an act of 21st-century ethnic cleansing. And
Prime Minister Benjamin Netanyahu has at times indulged these extremists in a cynical ploy to keep himself in power. But there are also prominent Israeli politicians who want and push publicly for a two-state peace deal that would grant Palestinians independence and full rights. There are other political factions involved in this, as well; they fight all the time, and very publicly, pushing and pulling Israeli government policy in one direction or another. When you watch that happening, and watch Israel's short-term thinking on problems like Gaza,
it becomes clearer that Israeli policy on the conflict is often formed day to day and week to week by a messy process.
To be clear, none of that is to absolve Israel of responsibility for its actions, only to honestly assess how those actions come to be. It is also not to absolve Prime Minister Benjamin Netanyahu, who is clearly not a peacenik. But he has often seemed more interested in managing internal Israeli politics, keeping his parliamentary coalition together, catering to Israeli public opinion, and delivering short-term security, all over taking difficult steps toward long-term peace. That is a massive failure in its own right, and it has contributed to the perpetuation of the conflict regardless of his motive, but it is also not the same thing as a deliberate, continuous Israeli strategy to achieve the destruction of the Palestinian identity — even if it may one day be the effect.