It is, or should be, entirely up to Israel and the "palestinians" to decide their fates.  Frankly, Israel should abandon the 2-state solution as non-viable and impractical since it is quite evident that the "palestinians" have no intention of ever settling for the existence of a Jewish state in the midst of all those muslim states.  That would violate the dictates from their prophet.  As it is, the two-state dream is a recipe for perpetual war.  However, even without an Israel, the Middle East would continue to be in a perpetual state of war.  That is islam, after all.