A blockade does not make a concentration camp.

That's a metaphor, ever heard of it? Israel doesn't allow dual-use materials. The thing is: A lot of life's necessities are dual use. See:

According to the Coordinator of Government Activities in the Territories of the Israel Defense Forces, in May 2010, this included over 1.5 million litres of diesel fuel and gasoline, fruits and vegetables, wheat, sugar, meat, chicken and fish products, dairy products, animal feed, hygiene products, clothing and shoes.

Specifically, the blockade helps fight terror.

The blockade caused the terror. Like literally the rocket attacks started with the blockade; you can look at the timeline. Also I like how you now narrowed your definition to the blockade, because you can't justify anything happening to Palestinians in East Jerusalem and the West Bank.

Only insofar as every border everywhere fits the definition. South African Apartheid—the thing people are trying to reference in order to demonize Israel—was intra-state apartheid.

You need to learn more about East Jerusalem. I'll start: East Jerusalem Palestinians are systematically and routinely evicted from their homes to make way for Jewish settlements. It's much harder for Palestinians to gain construction permits than it is for Jews. Palestinian peaceful protests are repeatedly suppressed violently. It's almost impossible for a Palestinian in East Jerusalem to get Israeli citizenship (not that many want it, but the ones who do can't), meaning that they live under a regime they can't politically participate in. Should I go on? For more information, look up "Palestinian boy shoot in face by Israeli police". There's more than one story.

Note how I didn't even touch on the West Bank; that's a whole different beast.

Muslims and Arabs in the region have been terrorizing Jews since at least the late 1800s. They were never willing to accept any form of peace or coexistence.

You mean anti-Jewish sentiment began to rise when the "let's take Arabs' lands for ourselves" movement began to gain steam? Say it ain't so. Also give me an example of that terrorization.