i've been through this a few times. israel is willing to allow for a palestnian state in gaza; in fact, it would like to rid itself of it. it would prefer for egypt to take the lead. but the idea of gaza as palestinian land is not contentious on the israeli right. this is the land of the philistines, and not a part of historical israel. however, israel is not willing to allow for a palestinian state in the west bank - it intends to fully colonize and eventually annex the region.
it follows that having the governments split is in their interests. since the election of hamas, the west bank has functionally been an israeli province; fatah has no legitimacy, and very little control. hamas, of course, is not a serious threat. but, should a government develop then that will force the israelis to go back to talking about a "two-state solution" - which is a dead idea on the ground, but still talked about widely in ivory towers.
israeli plans for a future palestinian state are limited to gaza and do not include the west bank. that's the logic.