Israel claims there will be no Palestinian state ever, because it's a percieved threat to Israel security. Knesset resolution claiming that was passed this year. And by that, for Israelis that's poof "no self-determination for 5 mil. people". No loss for Israelis, I guess in that. They'll not even let them be citizens of Israel, because democracy doesn't mean much to Israel. Israel has to be a Jewish state, not like half Jewish half Arab and soon majority arab looking at demographic growth...
I don't know? Maybe they really don't want this, and don't know how to get out of that situation created by Jews and their European "allies" back in first half of last century in any other way.
And please don't tell me you're presuming Israel to be the innocent and honest party in all this.