I would say nothing really changed as Israel is proceeding down a path it chose a long time ago. It is a tough spot to be in, expecially when there are literally millions of armchair generals/diplomats/whatev. trying to tell you how to better run your country.
In my opinion instead of looking for what went wrong, it would be far better to try and work out how to make things better, how to put an end to the middle-east tragedy once and for all. It is easy to blame either side, but by now, imho, after so much blood has been spilled it just does not make any sense.
I think it is a failure of the international community for not having resolved the matter earlier. Israel and the neighbouring middle-eastern states should be forced to work out a deal by the rest of the world – easier said than done, sadly.
Here is my solution:
Jerusalem should be made into a free city / a city-state with its own security forces.
That way nobody gets to “have” it, but all have access to the holy city.
Palestine should be given independence, they have fought long and hard for this.
Once the borders for both states have been agreed upon each side signs an agreement recognizing they will not contest what has been decided there and will work together to foster a peaceful coexistence. Neighboring states will co-sign, guaranteeing they will help enforce the peace between the two former adversaries. The UN will oversee the process for as long as it takes for the region to stabilize.
Many have tried this, I know, but we cannot give up on either the Israelis or the Palestinians, because as much as they might shun foreign interference in this, they also need it the most right now. It’s time for the “elder siblings” to step in and sort things out.