I don't see any point in rehashing the I/P infinite regress. You end up trying to figure out where bronze age tribes lived. For the purposes of this conversation I'm going to step away from I/P and look at the strategy that I believe was used in the abstract.
You've got two sides, Able and Baker, with a range of opinions on both sides, from a moderate majority to an extreme minority.
Able extremists attack Baker in a way which is big, shocking and violent.
Baker is provoked into retaliation against Able. Crucially, the retaliation is against the whole of Able, including the moderates.
When it all dies down, there are less Able moderates and more Able extremists. (Because if someone dropped an Acme piano on my family, I'd be tempted to strap on the Acme exploding underpants, too).
This "leverage your enemy's strength to radicalize your own people" approach is common. 9/11 is probably the clearest example, but you could even see the non-violent Civil Rights protests in America in this light (march, provoke violent response, gain converts and sympathy). If this wasn't one of the factors behind the October attacks, Hamas are dumber than I give them credit for.
Thus, I see "the Palestinian people will not forget this" as "the cycle of violence is locked in for another generation".
