The Pals will never accept that, nor should they. A one State solution is looking far more likely with every passing day. The terrorists (ESPECIALLY Lieberman) that comprise Israel's present government have been doing everything they possibly can to ensure that. So it'll either be one State, with equal rights for all, or one State that engages in apartheid. Choice is yours.
Palestinians report IDF airstrikes on Islamic Jihad targets in southern Gaza Strip (Haaretz)
from the article: Palestinians are planning to make Netanyahu sweat