I don't agree 100% with what you have written, more a critique of the rhetoric, but I agree with the general thrust. I don't believe in a 2 state solution but I do believe there will be a 2 state solution. The whole world wants it and heck, despite Netanyahu, it is still official Israeli policy. Trying to unwind that is going to be just too hard.

I think a 2 state solution will happen and fail and then one state would have to be looked at. As you pointed out, the PA is a racket. Heck, HAMAS is a racket too- leaders of both are all billionaires several times over. Neither does anything for the Palestinian cause.

A 2 state solution would have an undemocratic PA that is polling around 14%. Any free election would have HAMAS sweep in the entire lot and when rockets are fired down from the Judean Hills onto Ben Gurion airport, the IDF will be bombing Ramallah. No one has ever been able to show me how a Palestinian state can be democratic and not become ruled by HAMAS. So the only choice is an undemocratic oligarchy which will be stealing from the Palestinians and still blaming Israel for its woes. Plus all the terror related funding would dry up, the EU and US would be on the hook(and possibly Israel). And you can get other groups like the wahabis building schools and mosques to have an islamist regime in a decade.

You can't say you fear demographics with the Palestinians when Israel is 20% Palestinian citizens already. Either it is a big mistake to have them OR it is evidence that Palestinians and Jews can get along. It is rather simple to create a constitution that enshrines certain Jewish aspects in the state, right to wear a kippah, have shabbat as a rest day, Hebrew as an official language etc. I even think the law of return can be so enshrined, meaning Jews could always have Israel as place to flee to. Indeed, if someone was so worried about demographics, they could make Israel more inclusive of all Jews. Haredi, Orthodox and secular are well catered for but Conservative, Reform and even Karaite are not. Israel doesn't especially want those Jews and those Jews know it. But there are millions of them, voila demographics solved. Lol.

I am also not thrilled about giving up Judea (west Bank) to form a Palestinian state. If it happens and it works and there is peace(and I am wrong) I can be content with that. But as a Jew whose family fled Hebron in a pogrom in 1517, I am not thrilled at the prospect of not being able to visit the lands of my ancestors.

Because if you have a Palestinian state and you have Jews in it and they are fine, then you don't need an Israel. Likewise if you have an Israeli state where Palestinians live and they are fine, the need for a Palestine disappears.

How I see this is Palestinians and Jews are brothers, who else fights like this but family? I'm an Australian Jew but I know both Hebrew and Arabic. I spent a decade in the Muslim world. Judaism and Islam have more in common than Judaism and Christianity (just don't tell the evangelicals). My friend, Rabbi HaKohen, talks about Jews need to abandon their galut(diaspora) mentality and culture and re-embrace our middle eastern roots. He also talks about the importance to listening to the other sides narrative. Both people are effectively suffering from PTSD.

Another Israeli friend of mine, Rafi Gassel, is an organiser in the Federation model. That is rather than two states or one state, have one country but two states within it. That country some would call Israel and others would call Palestine. There is some discussion on whether there would be any internal borders between the two or none at all.