Oh, yes. They were attacked by their Arab neighbors, Palestinians, Hamas, and Hezbollah. After early setbacks, Israel gained air and ground superiority and pushed their attackers back beyond their borders. Prior to the invasion, to whom did the occupied territories belong. Not the Palestinians, they were parts of Syria, Jordan, and Egypt. The losers of the war. So if Israel were to return the occupied lands, it would be to these 3 countries. Do you think Jordan would give up the West Bank to a Palestinian state? What about Egypt giving up Gaza to Hamas led Palestinians?
Much like the US, Israel has the makings of a progressive state. Highly educated and affluent. But the darkness of ultra conservative religious groups, as well as right wing organizations, and the thirst for power of Netanyahu is a hindrance to the Israeli state. As long as rockets fly out of Gaza and the Palestinians riot, with Hamas proving the violence, Netanyahu or those with a kindred spirit will be in power.
My solution:
1. Israel changes its constitution to become a secular state and bans Netanyahu from government.
2. Except for the Golan Heights, return the occupied territories to the countries from which they came.
3. Jordan and Egypt destroy Hamas.
4. Jerusalem becomes an international city governed and protected by the UN.