That is illogical thinking on many levels. Up until 2005 the terrorism level was minimal and easily controlled and would have continued until now. The experiment that Sharon created even with the farms being abandoned, created a perception that Israel can be overrun via terrorism. Nation building stopped and tunnels and weapons were acquired. All that was created through a aid economy, whether Qatar, UNWRA with money and aid, education and turning a blind eye.
Take away UNWRA and all UN , Qatar money and force them to create a local economy and job creation and you take away a desire to use that hard earned money to go to war.
Gaza has been rebuilt numerous times by others , not the Gazans and not even Arab States.
Defending against Rockets and terror is not radicalization. You seem to be very confused Israel is not free of Muslims or Christians. How many Jews do you have in Jordan , Syria, Lebanon or the other Arab States. OR in the PA controlled areas.
Jewish anti-Semitism is more odious than by others. Keep that in mind.