What I don't understand is why not go along with letting at least WB or also Gaza get recognized as Palestine and do what India and Pakistan did going forward. Seems like it would be a lot more likely to work and a lot less risky. Maybe there are some special resources in either place?

A politically powerful segment of Israel is adamantly opposed to the two-state solution. And the strategic positioning of Israeli settlers over the years on WB land (in violation of signed treaties) has intentionally rendered establishing an independent WB as "logistically impossible" due to "security concerns" (protection of the settlers). There's no way forward without removing the settlers, and removing the settlers is political suicide in Israel, where hard-right parties have an oversized influence in the government.

A lot of geopolitics that leads to invasion is more about groupthink among whatever ruling class than any actual resource gains.

See Russia->Ukraine, US->Iraq, soon China->Taiwan.