Putting peace on the table in an impasse means compromise. You can, of course, put peace on the table on entirely your own terms once you've annihilated your enemy. That will never happen. Tiny Israel can keep on grabbing the land and making two states more and more impossible because the might of the US will always be behind them. Either the region is doomed to eternal conflict or there will one day be one state containing, eventually, more Arabs than Jews. If the Jews still want to be in power, they will become totalitarian. That will last no more than several years as western allies evaporate. Israel's claim for western protection as the only "democracy" (sure...) in the region will have lost its validity. If democracy is the goal, then the Jewish state will be no more. The demographics in the region dictate that Israel's continuing presence as a Jewish state is highly artificial. One day there'll Jews and Arabs living together as equals. Sounds good to me.

A two-state solution based on the demands of either side would be extremely unstable. Nothing would be solved. The conflicts would go on and on.

One state will happen. It might take a hundred years. If it takes just ten, a lot of lives will be saved.