This is already the defacto situation for palestine. It is already recognized by many countries. Treaties have been signed. We’ve been close to a two state solution in 2007 when PLO was in power. Hamas however is not about being at peace with the situation and aims at the dismantling of Israel. It wants an Islamic state from the east to the west. At multiple occasions has it sabotaged a two state solution through violence. Hamas is everything but stable, it is an Islamic extremist faction. The threat of hamas/isis has put religious extremist nationalist factions into power in Israel also fueled by people with a religious conviction. Just that the land of the palestinians belongs to the jews. They are not particularly interested in peaceful coexistence as seperate countries either.

I think most people have given up hope of a two state solution. It looks further away than ever.

www.un.org/unispal/history/