It isn’t just Bibi; after all, the voters put him there. It is the Israeli public that isn’t interested in making peace. Why?
For the simple and logical reason that making peace with the Palestinians is a much riskier proposition under today’s circumstances than not making peace. Given the existence of the wall, the vast imbalance of economic and military power, and the Arab world’s indifference to the plight of the Palestinians, the Israelis can reasonably view the latter as nothing more than a minor, chronic nuisance. Signing a peace agreement, on the other hand, would almost certainly result in a low level civil war with settler groups and their allies, along with some political assassinations. In addition, there would be no complete assurances that the new Palestinian state would uphold the terms of the treaty. Why, then, should Israel even try to make peace?
Because conditions can change. All it will take is a revolution in Jordan, Egypt, or both, and the calculus will become totally different. By then, it will be too late.