Hossein,
Israel is on its path to becoming a Hungary-like, free-voting semi-democracy.
The original set-up of the religious state invited problems that were for decades checked by the secular population. But power has shifted to the religious right wanting to occupy the West Bank and push the Palestinians out of Israel into Jordon.
The Palestinians have little leverage beyond occasional sympathy from America and Arab states, which is insufficient to establish their own state.
Moderate and secular Israelis could embrace Palestinians and reinforce their position against a takeover from the Jewish religious right. This coalition was beginning to happen before Netanyahu's return.
Whether the Palestinians would exchange full equality with Israelis and forgo a state is another question.
Many thanks. Always best to you.