There already is a Palestinian states. Sorry, two Palestinian states. Actually, technically there are three.
One is Gaza. It is governed completely by the Palestinians. This is the first instance in history of self-determination for Arabs in the historic land of Israel (As many have pointed out, the Palestinians are not genuinely a distinct group, just an extension of the wider Middle-Eastern Arab population). And look how that turned out. They voted in a recognized terrorist organization, who proceeded to eliminate all political opposition, ruin any hope of peace for it’s residents for the foreseeable future, subjugate it’s inhabitants, and launch a long bloody, pointless campaign against it’s stronger neighbour.
The second is the de facto Palestinian State in the West Bank. They have a President, a Prime Minister, a Parliament, a Police force, an entire bureaucracy and educational system, and tax raising and administrative powers, all aided and abetted by Israel. But they still refuse to take any proactive steps towards genuine peace, despite the Israeli Government giving way on many (too many) key issues, and granting them much autonomous power they frankly cannot be trusted with. And the West Bank is still a hotbed of terrorism and lawlessness, and any decorum that is there is due to the Israeli influence.
And the third, perhaps surprisingly, Jordan. At one point, more than two thirds of Jordan’s population were Palestinian, and they are still in the majority. Even the Prime Minister was Palestinian. This should have been satisfactory, but for uncertain reasons they launched a long and bloody campaign against the administration (of which much was Palestinian), and lost. Despite this, they are still the dominant force in the country, but refuse to integrate or acknowledge this.
And if you wished, you could count Lebanon, where too Palestinian groups took control of Beirut and launched numerous wars against Christian groups, and would have won without Israeli involvement.
All this is further proof of the general Palestinian myths. Firstly, the Palestinians neither desire nor will permit peace. Secondly, they are not a common historical entity. The Arabs in Gaza and the Arabs in the West Bank have less in common with each other than most Arabs in the region have with each other. Add to that that Arabs can, if they so wished, live perfectly harmoniously within Israel proper.
It is further proof, if proof were needed, that the only purpose of the ‘Palestinian cause’, is that the wider Arab population will not accept a large Jewish population or state as a neighbour, and wish the entire region to be exclusively theirs. That is their long term aim, not peace or self determination, for if they truly wanted either of those things they could have them in an instant. The Palestinians are simply a useful tool, as always.