Gaza also has a political system - Hamas was elected, same as Likud. I'd say it's probably not working right now, for obvious reasons.
> The status quo is what the people of Israel want (revealed preference by their votes). And Palestinians don't get a vote.
Politics is rarely that clear-cut. The electorate was shaped by their environment and rarely sees what has been painted as impossible.
Hamas was elected almost two decades ago, and Palestinians in Gaza have been occupied ever since by Israel. Yes, they do have a political system, but said political system is not democratically driven. It is driven by the Israeli occupying forces, in ultimate control by Israeli voters. Both the military administration, Israeli politicians, and Israeli voters show no desire to change this.
If the majority between the river and the sea wanted a pluralistic, democratic and secular state it would have happened a long time ago. The status quo is what the people of Israel want (revealed preference by their votes). And Palestinians don't get a vote.