Now apply the same standard to the enemies of Israel. Part of the dehumanization that goes on with Israeli apartheid and occupation is that while Israeli politics is accepted as complicated and nuanced, with analysis like the one you offer here, the politics of the other side(s) is always considered morally unambiguous. Hamas: a terrorist monolith. Fatah: supports a terrorist fund. Hezbollah: Iranian stooges.
If we apply the same absolutist moral standard to Israel, the nuance you present simply doesn't matter: if kahanist extremists are in government, the entire state is compromised, and Israel needs to be militarily defeated so that peace can exist.
If we allow for nuance also for Israel's enemies then a whole bunch of racist assumptions go away. The conflict is no longer a fight between the only democracy in the ME and the forces of Sauron. It's a political land dispute that is resolvable. But you have to talk to the political forces you've labelled terrorists, accept that they have valid and legitimate aspirations and concerns (just like the Israelis do) and negotiate in good faith.