Yer ol' Perfesser, though NOT an expert on Arab/Israeli relations, would make this obvious assertion: "Israel" qua 'state,' will not EVER tolerate a fully sovereign Palestinian State, on the West Bank, or Gaza, or ANYWHERE.
It simply CANNOT.
This seems incredibly obvious to yer ol' Perfesser, for reasons tied to Real-Politik, odious as it is:
1) Palestinian statehood would mean all those Palestinian whom the Israelis have wronged--if not since 1947, then at least since 1990--would immediately have a legal forum in which to seek justice. As "stateless" people, they have no such status, now.
2) Palestinian statehood would mean the Israelis would have to actually negotiate in good faith on matters like water rights, territory, and shyared resources, including the oil/nat-gas reserves which are among the things that Israel hopes to secure by making Gaza uninhabitable.
3) Palestinian statehood would mean the Israeli "settlers" would be constrained by international law from occupying new settlements, destroying Arab orchards, confiscating property, etc. Settlements might have to be abandoned or restored to the original Arab owners.
4) Palestinian statehood would carry with it the 'Right of Return." All the hundreds of thousands of Arabs displaced since 1947 would theoretically have the right to return to their 'homeland,' on and by the same logic which permits Jews that right; and if THAT weren't enough to put the chgingies to any deal....
5)Palestinian statehood would mean the Palestinians would be entitled to have a military for "defensive" purposes: army, navy & air force, with bases, armories, and weapons all INSIDE Israel..For those and a score of other reasons, Israel, qua State, CANNOT and WILL NOT accept or tolerate an autonomous, sovereign, Palestinian state, and why the "two-state solution" will forever remain part of the "peace process," since it is impossible and therefore guarantees the peace process will never end, and nothing will upset the current arrangements.