The two-state solution seems dead. After the second intifada, Israel gave up on it, and has resolved on a one-state solution where Israel dominates the entire territory and Palestinians not living in Israel proper are second-class citizens.
The October 7th terrorist attacks accelerated this. They don’t see the Islamist terrorists as deterrable, so the only option is to dominate them. They can’t make peace because a small group of terrorists can always explode any peace.