You’ve raised so many points that I can only hope to answer them all:
1. About all people of the world wanting justice and peace. How do I know that? Because I’ve never met anyone who doesn’t. The spirit of animosity and war in Europe is long gone. Some members of the elites still use war as an instrument to achieve their goals and use propaganda to fool their populations. But to ordinary people, there are no gains to be had out of war. Yet they are the ones who pay heavily in terms of human lives, taxes, moral corruption or bad conscience.
2. Most Muslims that I’ve met want to get on with their lives and have basically the same hopes and aspirations for their future as we do. True that some fanatics take their religion literally (just as any other fanatics, including Jewish ones), but as I said earlier, if Muslims are treated justly and with respect, if they are allowed opportunities and responsibilities for their own lives, there won’t be any feeding ground for extremism, which it will be marginalized, as it is in the West now. So I think a long-term peace is possible, as it is possible in between Germany, Britain, France and Russia (once sworn enemies), between the British and the Americans, between India and Pakistan, between the Chinese and Japanese, etc.
3. I don’t mean any particular strand of Zionism. I mean what I said: Jewish fanaticism and nationalism, no matter left or right or in the middle. I am in favor of one secular state with Jews, Palestinians, Russians and others living together, having equal rights, opportunities and responsibilities for the affairs of their communities and their country. In fact, I’m in favor of our planet as one big country, with all the people of the world as its citizens. The notion of a state dominated by a single ethnic or religious group is becoming increasingly outdated and will probably vanish as the people of the world grow increasingly secularized and intermarry. But that’s a bit too far in the future.
4. I’m afraid you’re not talking about the moral equivalence of Jewish and Islamic extremism, but about quantitative equivalence. Morally, both are equally reprehensible, just as Christian or Hindu fanaticism. If the radical extremists have their way, it’s not only the end of Israel, but the end of Christianity, Islam and the rest of the world. Yes, Jews are a small minority, but so are the Palestinians, the Baltic nations, the Portuguese, the Swiss, the Roma, the Georgians, the Chechens, etc. Lives of many of these people have been put on the line. This doesn’t mean they need to go ahead and occupy the lands that have been assigned to them according to some ancient texts and subjugate the people living on those lands, in order to preserve their culture and their lives.
5. Yeah, I agree that Jewish nationalism is in ascendancy. You say that Israel is going to remain a Zionist state. My question is: for how much longer? Things change, balances of power shift, empires crash, states disappear. What happened to the Jewish nationalists throughout history? The Maccabees, the Zealots, the Bar Kochbeans? They died and have almost taken with them to the grave all the Jewish people. The consequences of their nationalism were disastrous: the Jewish state was lost for two thousand years, Jewish people killed on a massive scale, sold to slavery, scattered. We survived not because of these heroes, but in spite of them, and thanks to some wise people who chose to devote themselves to study and learning and not to war. So if these heroes are seen as role models for the present-day Israel and if lessons of history are to be taken seriously, the Jewish nationalism may become a recipe for self-destruction.
6. You say: “Palestinians have repeatedly turned down offers of peace and partition. They brought the Nakba on themselves, Israel has no responsiblity for it whatsoever.” Palestinians were not consulted, but asked to give up great parts of their lands. According to the plan, the Jews were to win land and international recognition, but the Palestinians were only to lose land. If descendants of ancient Canaanites come to you in Israel and say: “You know, according to our book, we are entitled to this land, so we are going to establish our state here with our laws and traditions. You can either stay and submit to us, or move somewhere else.” I’m sure, Ben, you’ll gladly accept their terms.
7. “Justice” means Arabs recognizing Jewish rights to self-determination in Eretz Israel.” Well, that’s a kind of one-sided justice, which in itself is injustice.
8. “they lost their land because they initiated a genocidal war of agression” Yes it was a war, abhorrent as any war is, but it was a war against perceived injustice, a war for the lands of their towns and villages. Israel’s response was at least as genocidal and aggressive.
9. “Israel is prepared to give the Palestinians far more if they will give up terrorism and agree to live in peace with Israel.” Well, the PA has given up terrorism long ago, but I’m not quite sure what they’ve got in exchange. The position of the Israeli negotiators and Tzipi Livni, as revealed in the “Palestinian Papers” indicates quite the opposite: the Israeli side was prepared to give up nothing in return for major concessions.

But the most false statement, the one his own words contradict, is the claim that Israel is prepared to “give” the Palestinians anything “if they will give up terrorism and agree to live in peace with Israel.”

Because Ben Israel denies at the same time that this is possible. According to Ben Israel, “the Arabs” will NEVER “give up terrorism” and “agree to live in peace.” Even when they do. So Israel will conveniently never have to give up anything it has taken. The very last thing he wants is peace.

Israel’s problem is not “the Arabs.” It is the Palestinians, the people who were unjustly shoved aside to make room for Ben Israel. Israel doesn’t owe “the Arabs” anything, but it owes reparations to the Palestinians who have been the objects of 60 years of oppression on behalf of Ben Israel.

Now if the Palestinians are willing to relinquish their claim on more than half of what should be rightly theirs, Ben Israel is still unwilling to accept their offer and make peace. He still wants it all.

The thing where I agree with you is where you state that no peace is possible “as long as radical political Judaism and Jewish nationalism are in ascendancy in Israel”. I am not sure whether you consider Labor Zionism to be in this list, or just modern religious, pro-settler right-wing Zionism, but both insist on supporting Jewish settlement, immigration and a “Jewish State” with Jewish symbols. True, Labor Zionism claims it will accept a partition of the country, but this still leaves the “Nakba” (which the Zionist Left, not the religious nor secular Right carried out) and the problem of the Israeli Arabs.
You are positing a moral equivalence between “radical Jewish nationalism” and “radical Islamism” but there is no parallel. There are 20+ Arab states existing in the Middle East and Islam is the state religion of all of them, even of supposedly secular states like Syria. Thus, the existence of a right-wing Zionist Jewish state does not affect the vast bulk of the Arab/Muslim world. However, if the radical Islamists have their way, that is the end of Israel. You must remember that Jews are a very small minority and we have been taught by the world that our culture and sometimes our very lives are on the line and and not going to be guaranteed by the rest of the world. Thus, if some Arabs are going to live in a Jewish state with Jewish symbols, I am not going to lose any sleep over it, as long as they have the right to make a respectable living and the right to run their own religion and culture in an autonomous way.
In spite of the spirit of Oslo which attempted to negate Jewish nationalism, it is doing fine. Anti-Zionist parties like HADASH do not draw more than 1 or 2 seats from Jewish voters. Avrum Burg is attempting to set up an all-Jewish anti-Zionist party, it has not registered in public opinion polls, so the Arabs are just going to have to get used to the fact that Israel is going to remain a Zionist state. If they can not reconcile themselves to it, there won’t be a peace agreement.