I think I see things more jadedly than you do.

Here's what I see of the situation. On a nation state level, nobody cares about the Palestinians. The Palestinians only influence on the chess board is their suffering. All of their 'allies' like Syria, Egypt and Iran don't care about the Palestinians for anything more than making sure that they suffer, the greater and the more public that suffering the better propaganda it makes. Israel and it's allies only care about the Palestinians in so far as that same suffering makes them look bad and sways public opinion as well. The threat from the Palestinians is a police and humanitarian matter, not a military one.

So everybody with boots on the ground doesn't care about the Palestinians. The Israeli side will take what they want as long as public opinion isn't too onerous on it. The Arab nations will actively arm, encite and push the Palestinians from peace to violence at ever turn because it ensures they serve their 'purpose' of public suffering better.

I count exactly zero hope for a two state solution reached between Palestinian and Israeli's as equals. A future of the region where the Palestinian people are afforded a better future either in a province of Israel, or their own state created under terms dictated to it by Israel I see as at least an existent possibility. I honestly believe seeking something more is simply not a possibility because NOBODY wants it. The Israeli's don't, the Palestinians allies don't, even the Palestinians themselves don't.

You seem to think maybe the parties can be made to change their minds on that, but it runs contrary to their self interests.

Israel gains nothing by backing down and negotiating as equals for a two state solution.

Palestine's 'allies' actually lose out greatly in any resolution to the status quo because it currently ties down Israel and makes for great propaganda. They'd lose that and gain nothing in return but less suffering for the Palestinians whom they don't care about.

Palestinians themselves might be persuaded to change their minds, but the only ones swaying their public opinion are their 'allies' with a vested interested in making sure they continue to fight forever for all of Palestine and not settle for two states. Additionally, for all intents and purposes their opinions don't matter anyways because they lack the power to make a meaningful difference.

None of the above is my opinion on how I would like things to be, nor how I think they should be, but rather how I see it actually looking. Nation state actions can usually be stripped down to narrow self interest and naught else. The exceptions are failures of the state representation, like say a dictator choosing their personal interest over a national one, or a buffoon blundering off into idiotic random actions...