Pre the current war the US was not going to sanction Israel and I don't think it would have been reasonable to say they should. I think the current war has done a lot of harm to the US Israel alliance, and it should have, and who knows what happens.
Why on Earth would it not have been reasonable before this current war? I think that reveals your ideological preferences more than anything. Before the war the government was still annexing territory, illegally, and had glorified Klansmen as ministers.
I hate to break this to you, but the only reason there are currently 700,000 Israeli settlers living in the West Bank is because the *State of Israel* wants them to be there. That's why they have IDF protection, roads, power, water, etc, all supplied by the state.