Responding to BarryLS1.
Correct that few Arabs want a Palestinian State. They want the Arab world (if not the Islamic world) unified as it was (briefly) in the medieval period, so that one can go from Karachi to Rabat, speaking Arab, being Muslim, and being at home.
The Arabs aren’t about to leave. You can either make peace, or keep fighting. To “win” Israel needs to destroy the Islamic world’s ability to wage war, just as the US victory over the Nazis required total conquest. The Israelis are outnumbered roughly 150 to 1 (not including Muslims in sub-Saharan Africa and southeast Asia). To compare to North America, the ratio is worse than that facing the Indians (Native Americans) – and guess what their chances of reclaiming their homeland are. Sooner or later Israel will fall, and it will be messy. Already Israelis are increasingly unwilling to serve in their army or to pay taxes sufficient to maintain the army. Already the Muslims have nuclear weapons (remember, Pakistan is Muslim, albeit preoccupied by India for the moment). Israel’s long term future is bleak.
The only agreement acceptable to the otherside is for Israel to cease existing. Thus the best Israel can do is to find a way to cease existing without getting all the Jews of the yishuv destroyed. We need to insist on what is critical (Torah and Mitsvos) and compromise on what is not critical for survival (a flag, having a Jew running the government, using European-American law, etc.).
Of course you can rely on a miracle and hope for divine intervention. Perhaps Herzl and Ben Gurion really were the meshiach (or maybe Netanyahu or Herzog is). However we have no mesoret (tradition) that the meshiach will be fool, so that probably rules them out. For those of us who live in the real world, the best alternative is to make peace, and while the Muslims have never objected to Jews living Torah-based lives, they will never agree to being ruled by Jews so if we want peace, we have to stop trying to rule over them.
And the alternative will be the anhiliation of the yishuv.