An entirely logical resolution. Israel can never find peace with illegal occupation. Funnily enough, Jews will be in a minority in Israel in the next few decades (birth rates), unless they finally accede that their policies are unsustainable. A two-nation solution is the only logical way forward (BTW, I have no skin in this game).
 They are sufficiently armoured (nuclear and otherwise) to defend themselves, but seem hell-bent on being the architects of their own destruction. Logic or attrition seem to be their choices. We can only hope that logic wins, in the end.