For me, the biggest flaw in the two-state proposal is that it would fail to resolve the Herzlian ruling class’s lust for spazio vitale, and there would always remain a risk of the IOF waging a war against an independent Palestinian state. (Remember 1967.) So recognizing Palestine would mean very little if it also meant recognising its occupation.
The likeliest outcome is that the most privileged sections of the occupation are going to leave out of exhaustion and frustration (with maybe a few stragglers awaiting somebody’s wrath), then the least privileged foreigners—the houseless Jews, the communist Jews, the Jews who have nothing left to lose—they are going to accept the presence of returnees in their region and submit to a plurinational government.
Wishful thinking? Perhaps, but I am basing that on my observations of the neocolony. Look around… crime is worsening within the ethnostate. The number of people refusing the IOF is growing. Scores of thousands of settlers have quit the occupation. Wishful thinking would be peace happening immediately. Rather, the neocolony’s road to collapse is going to be long and painful, which it did not need to be, but nevertheless remains the likeliest outcome since the ruling class is dragging its feet.