The most likely scenario, at this point, is the one predicted by the CIA about ten years ago: One state for both., with one rule of law. The US has 4,500,000 Muslims and over 8,000,000 Jews. They live in the same neighborhoods, attend the same schools, play on the same soccar teams, and work for the same companies. The difference is that squatting is illegal in the US.
Saudi forces kill two militants after failed car-bombing (AP)
from the article: Israel's 'right to self-defense' - a tremendous propaganda victory