I firmly believe in a two-state solution, but UN recognition isn't going to make any of those things you describe happen anytime soon at all. And the current Shii/ Sunni conflict is just getting started. Why do you think Saudi asked the US and Israel to attack Iran? Why did the Bahraini royal family "ask" Saudi to deploy troops in Bahrain. Why does President Abbas routinely tell Ahmedinijad to stay out of the Palestinians' business? A Palestinian state would actually cause more problems in the short-term, but a Palestinian state is definitely in Israel's long-term interest.
Bin Laden's family killed in private plane crash in England, officials say (AP)