The delusion called "The Two State Solution".
The Fatah-Hamas divide in itself should have killed the idea of a two-state for two peoples’ paradigm.
By Barry Rubin
"Israel has become an affluent and developed country that can afford to pay for its own defense."
Since a majority of Palestinians cannot envision mutual recognition even after all issues are resolved and they get a state, they see it as merely a pause before the conflict would begin anew.