"I would love to live here"photo looks like a typical suburb - with a population density that is at a level where everyone still needs to own a car. I'm thinking European cities like Bern. Most people don't need one to get to work but basically every household still needs one for non-work use.
Car-free population density should be more like minor Japanese cities (like Kanazawa, etc), or old towns in Europe (downtown Bordeaux).
I think one key difference is that Israel has compulsory service for everyone. Like if in the 1770s the Torrey soldiers on leave held a music festival and they all got gunned down, I'm fairly certain the history books would not change substantially. It's abhorrent, but if you were in the same situation - occupation by some analogous group to wherever you live who have overwhelming military superiority - would you give up your Identity and assimilate, or try to make them hurt? I'm absolutely NOT saying Palestinians are the good guys, I'm just saying I understand where they're coming from.