I 110% agree. I think neither side, politically, has an interest in peace. Everyone would BENEFIT from peace, but they won't elect leaders who will get them there.
I'm going to be stubborn about this ethnic cleansing thing though, I think it's important. How does the action in Gaza 'enable' the settlements in the west bank. Couldn't those settlements happen regardless of what's going on in Gaza? I think the action in Gaza specifically is completely political, design to extract a change in behavior from Hamas, while the west bank situation is in part actually fueled by a religious context, and sometimes even racist, I'm sure.
But what's more interesting i this: I doubt, even in the West Bank, that the Israelis want to 'remove' the Palestinians. The underlying goal is to bring the west bank under the control of the state of Israel for religious purposes, but none of the religious contexts require that anyone else necessarily leave (apart from that whole sticky 'jewish state/democracy' thing).
Specifically, I don't think Israelis are actively pursuing homogeneity as it pertains to the population (which would be required for ethnic cleansing), rather they're specifically interested in owning the land. It doesn't make the whole thing much better, but it's a important distinction that whatever happens is not necessarily being committed with ethnicity in mind.