Just because they signed a peace deal, it doesn’t mean they are allies

No it doesnt. It is more the fact, that Egypt receives generous military aid from the US for continued cooperation and works together with Israel on many issues, such as control of the Rafah crossing into Gaza.

The following day, after the Hamas attacks, an Egyptian police officer shot at Israeli tourists in Alexandria and killed two Israelis and their Egyptian guide

And German policemen regularly are caught making "jokes" about the holocaust, celebrating Hitlers birthday and other typical Nazi shit. Still Germany as a state considers itself an ally of Israel and works together with Israel as closely as possible.

This was fresh after Palestinian leaders met with Hitler in 1941

So 75 years ago. Again taking Germany as an example, by this logic mere six years ago, Germany was practically still Hitler.

Now you don’t have to agree with any of this. But those are “facts” for the Israelis. For them it’s an existential crisis. The only way to reform Israel is also to reform the Arab world. Otherwise it’s just a race to the bottom - both sides will elect more and more extremists.

Many Arab countries including Saudi Arabia have been looking to strengthen ties with Israel recently. Before Yitzhak Rabin was murdered in 1995 by a member of the same extremist-right ideology that is now governing Israel, there was great progress made towards finding a peaceful solution. It was the same right wing extremism, stemming from Israel that sabotaged a peaceful solution back than and continues to sabotage a peaceful solution now in favor of more violence and more crimes against the Palestinians.

And to show just how fucked in the head Likud was back then and is today even more so, they depicted Rabin as Hitler in their protests against the Oslo accords. Israel has the power to bring peace, if they had any interest. But they choose to let nationalists and fascists govern and commit the most heinous crimes.