I have always suported the creation of the state of Israel but have been saddened by their Govt policies ever since they invaded Lebanon which added to the instability of that fragile state. There are two "logical" solutions to the 2 state policy, neither of which would be accepted by the interested parties. Either the whole of the West Bank becomes a Palestinian state without any Israeli enclaves and an exchange of population on the scale of the Greek/Turkish 1920s solution, which would probably lead to civil war between Hamas and Fatah. OR Israeli takeover of all the West Bank with any Arabs not prepared to lives within an Israeli state moved to Jordan, which would probably destroy Jordan. The Gaza strip is a basket case and can never be viable and should be part of Israel, giving space for settlers from West Bank.
In reality, I fear that in the long term demographics will destroy Israel. The highest birth rates are among Palestinians and the Ultra Orthodox jews who don't recognise the state but live off its handouts, not working, only studying the Torah and not doing National Service. With fewer jews from the Diaspora choosing to move to Israel and the educated, liberal population having fewer children, their ability to withstand Arab pressures will decline. This might push them into the nuclear solution which is unthinkable.
To encourage/coerce peace negotiations, US should stop subsidising Israel. It was sensible as the state was being established, but no longer, Israel isn't a Third World country needing aid if it gives up its nuclear ambitions.

My 2 shekels.

RtS