I'm not sure if it's valid to draw conclusions that the peace of the E.U. is due to its relaxing of border controls, and that we can apply this method to places like the Middle East. I do agree that infrastructure is a key part of peace for Palestine-Israel, but Israel seems hell-bent on dismantling all of Palestine's infrastructure and isolating its communities with corridors for its transport etc. So, good luck convincing Israel to reverse those policies.