The Palestinian issue has become a way to deflect criticism aimed at these governments internally - but actually seeking to do something about it would undermine their connections to the West. "Don't look at how we are actively suppressing you guys, look at those evil Jews." They dont' give a shit about the Palestinians, they care about enhancing their own control over their territories.
That being said, the Israeli government does the same thing in regards the Palestinians and other Arab states. It's a tactic of modern state rule and it functions on a number of levels. Check out Usama Makdisi's book Faith Misplaced on the relationship between the US and the Arab world and the role Israel/Palestine plays in that. Most interesting is the shift in the 70s-90s under Sadat and Mubarak in Egypt in regards to Israel and the US, with the camp David accords worked out by Carter serving to guarantee a mass privatization of Egyptian infrastructure. There was also an active Cold War project to dismantle secular, leftist states in the Middle East, which privileged more religiously oriented regimes like the Saudis. This disproportionately benefited the Israelis, in that it split the Palestinian opposition (led by the secular PLO), giving rise to more Islamists leaning groups, that excluded the numerous non-Muslim Palestinians.
Well, Israel does have a requirement for military service, which means young people have to serve (except for some Orthodox sects, which skate out on religious requirement). Egypt has a requirement as well, for whatever that is worth.
For myself, I'm a critic of Israeli policies in regards to the Palestinians. But I guess that was obvious.
Edited to add: Read some Talal Asad and his discussion on debates around modern states and violence: