You have accurately described the views and motives of Smotrich and Ben Gvir and explained why they are wrong.

The only real solution is a Palestinian State, but that can only happen when Israel believes its security would not be threatened. Since Gaza has been effectively reduced to rubble and has virtually no infrastructure left, a state is impossible until all of that is rebuilt. and that must be accompanied with a long-term educational, legal and political development that could support a state. That is going to take at least a generation. If the Palestinian State would include a dedicated passage joining Gaza and West Bank, it could take even longer before Israel feels comfortable. After Oct 7, that's the way it's going to be.

As far as international pressure on Israel, the decapitation and neutering of Hezbollah and the humiliation to Iran has changed things a bit. All of a sudden France says maybe Bibi has diplomatic immunity. Besides, the only countries that matter and will have a say are Israel and the US.