For a concise summation, this strikes me as an excellent effort.
For the nothing that it is worth, I have concluded that the 'two-state' initiative has been a mistake. Before the establishment of Israel, a no-state option was perhaps possible (similar to the Ottoman period, perhaps administered by the U.N.).
Today, that could be approximated with a single economy encompassing both geopolitical entities. That could be accomplished with a common currency. It would have to be be administered by a supranational agency, beholden to neither Israel nor Palestine. Neither entity would have to 'recognize' the other (formally) for that to happen. As it happens, I have developed a monetary paradigm that would make establishing such a currency possible — without compromising in any way the sovereignty of Israel or Palestine.