Look I've no axe to grind either way, there's plenty of fault on all sides - Israel, Palestinian leadership, Europe and the US.
Fault aside, Israel has been able to roll over autocratic rulers to the detriment of Palestinians, Lebanese, Syrians, Egyptians and Jordanians. A democratic Egypt is beholden to their voters who overwhelmingly, for example, are against the blockade of Gaza.
Do you think a democratic Palestine would have been satisfied with Arafat's delegations to the Madrid, Oslo and Wye summits? Arafat was Roy fucking Hodgson personified. He showed up without English or Hebrew speakers when negotiating with Americans and Israelis; he showed up without cartographers when fighting over land; and, most damning of all, he lost as Arafat when he had the chance to win like Mandela or Ghandi.
No, the Israelis resemble the chip leader at the table who've have just seen the drunken Sheikh replaced by someone they can't read. It was easy to roll over Egypt and Syria; they are, after all, teghoghists. Try pissing on a democracy, see how far that gets you.