Does Israel oppress Egyptians or Jordanians, or even Syrians?
The answer is no, because neither Egypt nor Jordan nor even Syria is hellbent on the destruction of Israel. Remove the daily threat of the destruction of Israel and you will see that Israel will not resort to extreme measures to defend itself from daily attack.
But a response to that might be "But Gannicus, does Israel really have to resort to extreme measures to defend itself?" To that I would ask whether Hamas really have to dedicate itself to the destruction of Israel? If Hamas has no choice but to seek the destruction of Israel, it will have to live with harsh measures. Everyone here hates harsh measures and there's no doubt one can find over-reactions to Hamas (and before that PLO) attacks, but why does Hamas have a right to demand the destruction of its neighboring country?
Imagine France's reaction if the ruling party in Germany were dedicated to the destruction of France and backed that policy up with the use of deadly force? It's pretty hard to imagine France being willing to sit down with the Germans to negotiate a peace until Germany repudiated this policy.
As for the suggestion that the existential threat is "greatly exaggerated" because "Israel is by some significance more powerful than Hamas and the Palestinians in the area", I ask you in reply whether you support Israel's military superiority. If you do, then what you really support is the horrifying status quo of one regime being dedicated to the destruction of the other and the other regime being sufficiently armed to prevent its own destruction. That's blindingly daft. That status quo simply ensures ongoing suffering between the two peoples. I can't speak for you, but I don't like the status quo one bit. And if you argue for the dismantling of Israel's military superiority and have no problem with Hamas's grand strategy, then you are effectively in agreement with the proposition that Israel has no right to defend itself and no right to exist.
Those who are interested in the ending of the suffering of the Palestinian people should support Hamas, or whoever rightly speaks for the Palestinian people, declaring once and for all that Israel has a right to exist, but that in exchange for a peace agreement that Israel must agree to numerous conditions, which of course begins with the settlements, among addressing other legitimate grievances. Palestinians must have water and other basic necessities of a civilized nation, which Israel and the international community can help with. And we have to go far beyond addressing grievances but also rebuilding the physical, cultural and intellectual foundations for a functioning and prosperous society. These two peoples can not only coexist, but prosper together. But the Palestinian people have to stand up against the extremist political agenda of Hamas in order for there to be any hope of that.
All this can be done, but those who speak for the Palestinian people have to be courageous by denouncing calls for the destruction of Israel and commit themselves to a lasting peace with their Jewish neighbors. This won't be easy, but it is a necessary condition for peace.