You are correct in your view that Israel is caught between “a rock and a hard place” in its conundrum over the “peace process.”

If it holds out for a “one state” solution, it (over time) will be destroyed demographically.

On the other hand, if it “bites the bullet” and makes painful concessions and compromises by giving away pieces of its sacred and cherished land in the “hope” of achieving a phantom “peace,” it will be committing stepwise suicide. Its enemies will never tolerate any form of Jewish sovereignty (or even presence) in Eretz Israel.