So this boils down to two things, correct me if I'm wrong:
1. The Arabs will want to kill us to death
2. We cause a continued cycle of generational terror.
The Arabs around the world already hate us to death, that's why they've attacked us multiple times during Israel's lifetime. We were already living with random 1-man terror attacks spread out in our life time, I'm willing to pay the price of still having that but getting rid of Hamas and keeping Gazans either contained or out of the Gaza strip. I'd like to have a year were rockets wouldn't be flying over my house for once.
They already were trying to kill you, everyone that knows Arab and Jewish history and has read about the desert monotheisms understands that this rivalry is basically ancient. It deceivingly goes dormant at times, only to return with a vengeance. It's also incredibly complex, as it has ethnic, racial, tribal, religious, politic and nationalist aspects, so the motivations are never easy to discern and very messy. Your military superiority, US support and Arab impotence will frustrate their already impoverished and deeply unhappy citizens. Their elites are afraid of the masses, and they tend to want peace and recognize your statehood, so they can continue living in luxury and enjoy US gibs. But their subjects are at the polar opposite.
It's not you, the Israelis, or Jews, that cause the cycle. It takes two to tango. Both sides are caught into this, are prisoners of this ancient hatred, and each time it tends to stabilize and wounds start to heal, something will happen to ensure instability continues and blood continues to flow. It's literally demonic.
There are very limited long term solutions, and none are perfect or guaranteed to work. The thing is, even if it's not said loudly, the world has much higher expectations from you than from Arabs, which most of the "civilized" world considers a half-savage collection of peoples that refuse to let go of their extreme form of religion and consistently act like children, stomping their feet and burning shit down whenever somebody makes fun of daddy prophet. You on the other hand are a highly civilized rich country that Nvidia and Intel consider the best place to develop new technologies in.
You could look at how Europe dealt with these blood feuds. For example, Hungary and Germany, both countries with imperial ambitions, required international coalitions and world wars, pacification and territorial penalties to be "fixed". And that was largely made easier cause it was Europeans vs Europeans. But you have a different religion, different ethnic group, massively outnumbering you to deal with. They cannot be disappeared, cannot be nuked, cannot be pacified as any attempts to score decisive victories will cause China and Russia to intervene so the balance of power does not shift too much.
What is guaranteed is that what you do now will only increase the hatred, and the noticing of your people has multiplied by a significant factor. For such a tiny group, that holds so much wealth, influence and power, it is never good to be so visible.
All in all, I can't see how this can end positively even if you score a win, which you 99% will.