The "oppression" of the Palestinian people is a propaganda tactic used by a totalitarian dictatorship (the PA) as media spin.
The "oppression" amounts to anti-terrorism measures such as arrests/public trials for incitement/violence/conspiracy to murder, demolition of terrorist infrastructure i.e. munitions depotss/factories, and defensive measures such as checkpoints to examine Palestinian vehicles entering Israel and security fences.
The settler issue, amounts to Jews returning to lands they relenquished in the 1948 war when the UN mandated them out of cities like Hevron and Sh'chem (now Nablus). Upon their return, they were met with further violence and indeed lands were appropriated - by the only sovereign state that claimed them (Israel) - in order to defend against the frequent attacks from terrorists that began long before 1967 as well as potential attacks from the neighbouring Arab states that so frequently declared war on the State.
It is indeed individual Palestinian Arabs that commit these crimes and by no means should all Arabs be persecuted because of the actions of others.
Yet, it is the systematic encouragement of terrorism by the Palestinians in power (be they Hamas or the PA), as well as the vulnerability of the Jews in Israel that prevents the formation of a legitimate Palestinian state.
No Palestinian terrorists come from small towns. Most small-town Palestinians get along with Israelis from nearby towns, even settlers! They share commerce and visit and trade with each other. This is because most small town Palestinians, without TVs, are untainted by the relentless stream of
propaganda urging them to destroy Jews/Zionists, as Palestinians in cities like Kalkilya, Tulkarm, Beit Lechem, Nablus, Jenin, Gaza, Rafach, and other Terrorist factories are, and that is why there is still a conflict. The PA simply does not control anything outside the reach of its armed thugs, and as such can not operate as a government. It's a matter of finding a government who will guarantee the safety of Israelis and quell the blind unadulterated hatred - not of Israeli policy, but of Jews.
Who else is there?
The Hamas?