I've read Uris's book and your are right, it's a case of perpetual squalor and the anger generated by it directed as the controllers wish.
I personally believe Israel rewarded the suicide bomber mentality by exiting the Gaza Strip. The planned departure from the West Bank is another caase of rewarding the enemy for his atrocities. Israel needs to offer full citizen ship in the state to any and all who live in the region. If that isn't good enough, then carry on the land fill operations.