The "tightening of the screws" is a result of Palestinians deciding to wage war against Israel, build rockets, fire them into civilian populations.
It's really pretty simple. Palestinians want to destroy Israel. They have and had no interest having a "Singapore" in Gaza.
I'm not sure how you get to the 90's. We are talking about the disengagement in 2005.
I lived in Israel during this time and I know very well what the mood was. I've also seen interviews with people who were in the loop who say Ariel Sharon (who architected the withdrawal) sincerely wanted to see Palestinians succeed and use this as a blue print to also end the conflict in the west bank. International donors even bought equipment from Israel (like greenhouses) so they can leave it for the Palestinians who promptly proceeded to destroy them.