Does Israel actually want peace with the Palestinians Or do they want the current situation to continue for the foreseeable future ?

Israel doesn’t want peace. Israel wants Palestinian lands but doesn’t want Palestinians, that’s why they keep building illegal Israeli settlements on Palestinian lands in violation of international law and prevent Palestinians from building there. There are many examples of Israel deliberately seeking war to maximize territorial expansion. There have also been many Arab peace offers that Israel chose to neglect or reject. As a matter of fact, Palestinians have compromised tremendously during negotiations, and Israel has never -not even under Rabin- committed to a sovereign Palestinian state.