The essence of the matter is that the IsraelPalestine could act as a trigger for a war, and that war could go nuclear. Eric often mentions a "nuclear event", which he believes might motivate people towards peace; equally, however it might escalate to a global nuclear war, which does not bear thinking about.
Given these possibilities, we must find a way to peace in IsraelPalestine.
This is where it gets tricky. Israel will not talk peace while the Palestinian fighters are kicking weakly at its shins. The Palestinian militias will not talk peace while Israel is pounding it to death with its enormous club. This is the immovable object and the irresistible force problem, which is logically insoluble, but soluble with the illogical acts of trust documented in the Fabian "How Peace is Possible" thread here, which talks of a series of trust-building moves.
So peace is possible, even when it seems impossible. I have heard the impossibility argument over and again, in relation to the Troubles in Northern Ireland, but now we do have peace there, just about.
For the Palestinians to stop kicking, Europe has to bring big pressure on the Israeli regime to make them talk. And we have to have realistic , politically achievable aims on the negotiating table, which, like it or not, means the two-state solution.