Based on your argument, why don’t the Gazans leave? Would you not consider Gaza to be a bad neighborhood?
The answer for both sides is that both sides have historical claim to the land, and there is no better neighborhood to live in for either of the sides anyway.
I accept that argument. If I were Gazan I’d leave too, if I could.
But Gazans can’t leave (the borders have been closed for years now), while Israelis can emigrate whenever they like. So on an individual basis, every Israeli has made a choice to accept living in the bad neighborhood, whereas the Gazans have no choice but to make the best of the bad situation.
The many Jews and ex-Israelis here in the NYC suburbs seem to find it pretty safe. My neighbor just sold his Tel Aviv condo he's owned for 40 years -- he seems to believe he's never going back.
The answer for both sides is that both sides have historical claim to the land, and there is no better neighborhood to live in for either of the sides anyway.