If Europe implemented the same mindset, of existentialist dread, it would still be fighting wars between one another state. Radical problems require radical solutions, radical institutions, and according radical changes in mindset.
What you described just here, of an Israel which has "no choice" but to "utterly defeat"* Palestinians is in fact eerily similar to what the Nazis said about the Jews and the concept of a "final solution". There are always choices available. When we say "I have no choice" it only means "I will force my will" and nothing else. Nietzsche reflected on these concepts over a century ago. We still fail to understand that we are better than that.
*Which is dreadful lingo referring to an acceptable high-rate of civilian casualties.