I see the two state idea [for Israel and Palestine] and the current scenario as a fight over what to call a battle line. I dont see how palestinians would ever elect or be happy with an Israeli friendly government and Israel will always defend herself.. so the war never ends.
Wars always end. Even the Hundred Years' War only lasted...well, a hundred years. People said exactly the same about the Troubles in Northern Ireland, but they (touch wood) have ended. The Palestinians did elect an reasonably Israel-friendly Government in Fatah, but unfortunately it was corrupt (so I am told) which was one reason for Hamas' success.
Israel will always defend herself, to an excessive and provocative degree, but if she can feel that she is not under attack, there is a chance for her to do less agression and more expression.
Our emotions see everything in total, black /white, good/evil terms. Bush and Osama Bin Laden are totalists, both seeing the other as some kind of Incarnation of Satan. This is not good, but fortunately, totalists like Bush and Bin Laden are in a tiny minority. The vast majority of mankind has the capacity to think in a much more nuanced, analytic way - when we put our minds to it.
So all wars must end, and there is a peaceful, rational negotiated solution in there somewhere.
Nil carborundum illegitimis