Arab and Jewish playing together is not the path to peace, it is the result of peace. After 100 years of failure, it is clear there is no diplomatic path to peace. The path to peace is trade. Before the war, nearly 500,000 Palestinians worked in Israel and the settlements and acts of terrorism were very rare because those workers earned several times what they could have earned under the PA or Hamas: they simply had too much to lose to go to war. Allow free trade between Israelis and Palestinians and pretty soon everyone will have too much to lose to go to war.
How can this be serious?
As you've mentioned, Israel had trade relations with Gaza up until the war.
Israel bought their produce and and they bought mostly from Israeli Arabs.
And the same people who supposedly made a fortune working with Israelis,
spied on them, Jews and Arabs alike to be slaughtered on live facebook feeds.
There are mansions and villas all over Judea
and what used to be western-Gaza,
bigger than Israel's PM house.
These people are backed by oil-oligarchs,
while running the biggest aid scheme.
According to estimates there're no
more than a million actually living
in Gaza beside UNRWA registry.
So money was never lacking,
they still stripped their kids
in suicide bombs.
Now in Israel,
the new term for these brutally
disproven concepts is "the Harvards".
As in forget about it in the Middle East.