This will work when Israel allows Hamas to take over in the West Bank. The Hamas will smash the PA forever as they've done in Gaza and the world will give up its phantom pursuit. World leaders will be left to deal with Hamas, which will choose the same path it has in the Gaza. They will be isolated globally as they are now and Israel will have the upper hand. There will be more refugees and the bordering nations of both Jordan and Egypt will be greatly impacted. in the end they may be forced by the world body to retake what was lost during the war, but not all of it. yes, SOME land will eventually be ceded, but not to a new state, rather to the old states in which they both came.
Israeli teen lightly wounded from stone throwing in West Bank settlement of Kiryat Arba (Haaretz)
from the article: Report: Abbas reiterates refusal to recognize Israel as 'Jewish state'