Mr Netanyahu has resolutely ignored a plan by his transport minister to build an artificial island off Gaza to accommodate a sea port under Israeli or international supervision. And no one is considering allowing the Palestinians to exploit Gaza's natural gas fields, just off the coast.
In fact, the only thing holding Gaza together is the international aid it receives. And that is now in jeopardy too.
The Trump administration announced last week it is to slash by half the aid it sends to Palestinian refugees via the UN agency UNRWA. Mr Trump has proposed further cuts to punish Mahmoud Abbas, the increasingly exasperated Palestinian leader, for refusing to pretend any longer that the US is an honest broker capable of overseeing peace talks.
The White House's difficulties will only be underscored on Sunday evening, when Mike Pence, the US vice-president, arrives in Israel as part of Mr Trump's supposed push for peace.
Palestinians in Gaza will feel the loss of aid severely. A majority live in miserable refugee camps set up after their families were expelled in 1948 from homes in what is now Israel. They depend on the UN for food handouts, health and education.
Backed by the PLO's legislative body, the central council, Mr Abbas has begun retaliating -- at least rhetorically. He desperately needs to shore up the credibility of his diplomatic strategy in pursuit of a two-state solution after Mr Trump recently hived off Palestine's future capital, Jerusalem, to Israel.
Mr Abbas threatened, if not very credibly, to end a security coordination with Israel he once termed "sacred" and declared as finished the Oslo accords that created the Palestinian Authority he now heads.
The lack of visible concern in Israel and Washington suggests neither believes he will make good on those threats.
But it is not Mr Abbas's posturing that Mr Netanyahu and Mr Trump need worry about. They should be listening to Israel's generals, who understand that there is no defence against the fallout from the catastrophe looming in Gaza.