I would argue it is nigh incapable of Israel (or its state apparatus and the majority of its population) to make peace with Palestinians. Not because they are Jewish, but because it is the nature of settler-colonialism.

One could point at the Anglo settler-states claiming they show there's a step forward- but what justice has been done there, for the native peoples? I live in Canada, I was raised mostly rural, many of my childhood friends, classmates were indigenous and they all were being raised by white, Christian families. If you think there's any justice- hell, any equality here, I got a bridge to sell you...

There is only one answer to settler-colonialism- indigenism. It doesn't require the driving out of all settlers (though I won't claim I'd shed many tears about it if it did). It's the answer in Bolivia, it's the answer in South Africa, it's the answer in Algeria, etc... while NZ is far from perfect to my understanding, some degree of it is in employ there, as well.

There is no place for a white, Jewish ethnostate imposing itself in the rightful land of the Palestinians, and the settler mentality is aware of that- so long as the Palestinian people exist in any meaningful sense, peace with the ethnostate is a pipe dream. There's a place, perhaps, for a state that comprises both the indigenous Palestinians and the settler Jewish peoples- but Israel? I don't believe that, just as there was no place for the Pied-Noirs to have their state, there was no place for the Rhodesians to have their state, there was no place for the Apartheid government and Boer minority rule to continue.

China toeing the UN line- the pragmatic approach- is sensible. I'd toe it too, if I were in any position to do so. But inevitably, IMO- so long as the apartheid-state exists, so long as the state built upon the ideals of white supremacy and the destruction or suppression of the indigenous peoples, and the sole benefit of the settler-colonials exists, the Israelis will show their true colors, time and time again. Not because they're Jewish, but because they're colonials clinging to a colonial ideal, who have not faced justice or equality, and this is what colonials do. Eventually the Anglo settler states no doubt (IMO) will have to face their own reckoning, it may not be indigenism in the truest sense (as the native peoples aren't demographically relevant enough) but it will be a reckoning of the white, imperialist state, especially as the white demographics continue to decline.