"Hamas's rise to political prominence in Gaza is directly connected to the failure of the Israeli left to offer the Palestinians a reasonable settlement during the 1990s and early 2000s."
Actually, I'd argue that their rise to power has as much to do with the corruption in Fatah at the time, and the Gazans thus losing faith in that long-established party...without that, I suspect they'd have won in 2006, rather than lose credibility and create a power vacuum which, as with so many vacuums, was instead filled by the group that simply shouted the louded and most radical nonsense, rather than giving practical solutions (since, hey, 8+ years later, and aside from 3 wars with Israel in that time...Hamas has done such a great job.)
What's more, Jamiet, they did try at Camp David in 2000...
And international sources place the blame on our good friend Yasser Arafat and contention over Jerusalem because, well, it's Jerusalem.
But they did try, and that wasn't even with a truly Israeli Leftist in office--
I think it's fair to say that this generation, the one that just got Obama elected, in part, is across the world more generally liberal and Leftist than the one that came before it, and I'd argue a lot of this has to do with the rise of the Internet and the sort of culture sharing it's brought about.
My argument is thus more gradual and cummulative than cause and effect, Jamiet--
IF there had been protracted peace, then Israeli (and perhaps Palestinian) youth could have trended more liberally, and that, in turn, could have spurred on more Leftist governments, since youth blocs are more likely to vote liberal. THAT, in turn, could have allowed for Israel's parliament to grow more and more liberal, until finally there would come a point where it'd have a PM that would take both the stances that must be taken AND give the concessions that should and must be given in order to have peace.
INSTEAD, Hamas' attacks have ensured a new generation of Israelis have grown up hating Hamas, hating Gaza, and thus not at all being as inclined to peace as they might otherwise have been, because constant war has made them more radicalized, and has produced leaders that have shifted further and further to the right...and that same shift to radical conservatism is seen in Gaza as well as throughout the region overall.
Prolonged peace could have bred cooperation, but instead, we have one side vowing to exterminate all the Jews, and the other side keeping them at gunpoint for fear of being overwhelmed by the superior numbers of first the Palestinians and then any associated nations or terror groups that might want a replay of 1947.