Unfortunately, it is true, but I would argue that a big part of that is actually still because of the Hamas election by the people of Gaza which immediatly threw out the Oslo agreement. After that, the people of Israel which voted for left leaning governments that were pushing the 2 state agreement were taken out as people in Israel did not believe the Palestinians actually want peace. There was a distinct movement to the right on the Israeli public and with it government after that - and it is hard to argue with why.
The Israelis went our of their way to give the Palestinians authorization over the west bank and Gaza (including removing over 20 settlements in Gaza) - all the Palestinians gave up was the agreement that Israel has the right to exist, and then they chose Hamas which immediately reneged on this agreement. IIRC, the PA also became more confrontational because they were afraid they would lose control of the west bank as they did in Gaza - and the shit escalated from there.
I think the last time Israel had a left leaning government was before the Oslo agreements (someone with better grasp on Israeli politics might be able to help with better stats). When they went down and the terror attacks did not stop followed by Hamas taking over Gaza, the country turned right wing. We can rightfully say there is a bunch of crazies in the Israeli government, but we can also very clearly show why this happened, it was mostly because the work for peace proved to be useless against the radical Iran sponsored radicals that still seem to run a large portion of Palestinians.