Common Courtesy is somewhat, IMHO, simply deluding himself by saying, "At present, Fatah is quiet and learning that positive relations with Israel may be better than hostile (allowing for the radicals that want to keep purity). Hamas and Hezbollah are the ones with the radical sponsors that can not accept for Israel to exist."
Yes, in sense the West Bank under the good peaceful Palestinians of Fatah get more food aid, but Israeli has not rewarded them in any way in terms of any two State solution, and instead, at least until the larger world demanded a settlement freeze, Israel has kept up its settlements and increased its stranglehold control.
So in a sense you are right Common Courtesy, Israel could militarily replace the democratically elected quasi government of Hamas with any puppet government of its own choosing, but please do not delude yourself into thinking it would lead to any progress in solving what Israeli has to do to end Israel's Palestinian problem.
So far Israeli seems to hope the Palestinians grow gills and swim away, and instead will soon find there are more Palestinians than Israeli Jews in Israel.
We must realize that there are only two ways forward here, either a Palestinian State made up of land captured during the 1967&73 wars, or Israel will have to assimilate its Palestinians with full voting rights.
And now the only real Israeli plan seems to be hope they will grow gills and swim away.
Worse yet for Israel, given the publicity generated by the Gaza blockade, is taking a world wide PR hit as many in the world are waking up to the plight of the Palestinians. Something the larger world ignored for 62 years but is no longer ignoring now. And the Israeli justifications that worked before are now being increasingly called into question.