Israel IS oppressing the Palestinians. It has been placed in the position of being forced to oppress them because of the numerous attacks made by the Palestinians upon Israel. IMHO, one major reason for these attacks was to cause the Israeli reaction (and consequent oppression) move Palestinian opinion toward confrontation. And it worked beautifully.
It is not possible to occupy a country without oppressing the people. Occupation requires checkpoints, searches, ... and other intrusive measures at the very least, and often involves gunfights that inevitably kill innocent bystanders.
Sharon's idea of "Disengagement" had both good and bad effects. Good, it reduced the portion of Palestine under Israeli occupation. Bad, it gave the terrorists more freedom to operate.
Israel's position is that it wants a permanent, comprehensive settlement of all issues. These include, but are certainly not limited to:
1. Security
2. Borders
3. Trade
4. Travel
Current Events » in reply to by that Rationality, the Jews of the world should be sending out droves of Suicide Bombers.
My personal position as both a Jew and a Zionist.