You say the Palestinians have no choics. Seems to me they have plenty. 1) Hopefully they will forego violence, as indeed they mostly have in the last 20 years, but you never know. 2) More likely they will continue to encourage the isolation of Israel internationally; this they are proving relatively adept at, with plenty of help from Israel. 3) Wait for demographics to force Israel either to formally declare apartheid- and face international abhorrence because of it- or for democracy then to have the Arabs be the "winners" in your little win lose scenario.
Government confirms MK Yaakov Litzman as Minister of Health (Haaretz)
from the article: With a victory like this...