It's a big risk if the Palestinians declare independence. Either the world will come help, or the Israelis will just re-occupy it as if no declaration of independence ever occurred.
The whole land is already occupied except Gaza. Israel withdrew from Gaza because they found that staying there is not feasible to them, not because they wanted to give something to Palestinians. So, if Israeli decided to go back and occupy Gaza permanently, it will be very hurtful for them as they will lose the souls of their soldiers more easily than in the West Bank.
Rabin, the Israeli prime minister said once during the first Intefada: ""I dream of the day I wake up finding that Gaza was swallowed by the sea."
Eventually, there is nothing worse than the current situation over there.
