The state of Israel is inbetween a rock and a hard place. If they do nothing Arab interests from surrounding countries will over run them in anyway possible. Remember there are a few in the world who see Israel as an extension of America. Israeli politicians know that a Hawkish-stance wins votes to boot. If you look deeper into the Orthodox/Secular-mix of the population you’ll see that the Orthodox birth rate outstrips Secular-Jews. This in its self is going to create huge problems in the future.
All the best to both sides to be honest. I don’t see any solution anytime soon. Decades of strife lay ahead.