Second reply here. Two state solution...well, best of luck there.  I don't see the state of "Israel" to likely be a thing in 5-10 years, as they seem pretty hellbent on self destruction. But that's speculation after watching quite a bit of analysis, and it's certainly not a sure thing, nor worth much argument.

My ideal would be a single Palestinian state  without the apartheid system, which is the stated goal of the various resistance factions. Though I have to say after this genocide it's going to be hard to bury the hatchet and stay neighborly.  Post-apartheid South Africa wasn't without it's bumpy ride (and still isn't), and that was without the wholesale slaughter of hundreds of thousands of people, forced displacement, and utterly inhumane living conditions. It'll likely take some brave Jews to stick around and try to help patch things over once the state falls, if that is to be the path. Strange things do happen sometimes though. 

 I don't think either side will cease to exist. And I don't think they can live intermixed given how extreme the cultures have become.  So there needs to be a thick DMZ between them policed by a 3rd party.  Either that or eternal violence, which is actualy still most likely.  But events often suprise us all... maybe the Israelis will all disperse after seeing how unsafe they actually have made themselves by pissing off everybody they could possibly piss off.