Why can't Palestinanians focus on state building instead of suicide bombing?

Take for instance, Isreal achieved statehood in 1948 and with in a short time has developed a democracy, successful modern western economy with comparable standard of living and the strongest army in the middle east. Why can't Palestinians work with what they have? Use their creativity to build an economic infrastructure like roads,schools and hospitals instead of building bombs. Why can't they develop businesses and trading partnership to grow a domestic economy so they can have something to offer at a negotiations table except broken pomises of peace. Instead of wasting millions of dollars on a pointless war and spreading hate, why can't they use those dollars towards a better future for their children?