Time for a little prognostication, perhaps. What next, indeed?
(1) The prospects for peace have been set back a great deal. Abbas and Fatah are weakened. Hamas is temporarily weakened, but its support among the Palestinians has been strengthened. The geopolitical realities outlined in the article I cited above continue to apply: Gaza still can't survive either without constant and massive aid from abroad or integration with the Israeli economy.
(2) The two-state solution may no longer be a viable option. I always believed that its chance of succeeding depended on quickly normalized relations between it and Israel that would lead to effective economic integration, followed by a quick rise in Palestinian living standards, and normalization of their security conditions, followed by gradual deepening of political cooperation. It's highly unlikely now that Israel will permit this even if a political two-state solution is reached. This means that even in this situation Gaza will remain a walled-off slum that's not capable of sustaining itself economically; its people will have nowhere to go and no prospects for a better life, which means that Hamas-style extremism will only grow stronger.
I'm now highly pessimistic of any stable peace being reached there over the next several years, no matter what the USA or the rest of the world does.
So, what possible stable end states can I imagine, and how could they be reached?
(1) The South African scenario: Israel continues to expand settlements over the next decade or two. Eventually it reaches a point where it has no choice but to annex the Palestinian territories and institute an official apartheid state. This turns the Palestinian struggle into a civil rights struggle. This lasts another decade, or two, after which the apartheid government is toppled, and a new, Palestinian-dominated one emerges, ostensibly based on equal rights for all before the law. What this government is like in reality is anybody's guess.
(2) The regional scenario. Israel pulls back from its settlements and imposes a two-state solution. Because of the reasons outlined above, Palestinian violence and extremism continues; the rockets keep falling. However, Israel reaches stable peace agreements with all of the established Arab states. Over the next several decades, relations with them improve from a cold peace to genuinely cordial. Following yet another shooting war, massive international aid payments result in Egypt absorbing Gaza and Jordan absorbing the West Bank, and the Arab countries hosting Palestinian refugees in naturalizing their inhabitants as citizens. The Arab states crack down on Palestinian extremism in a massive bloodbath, followed by partial dispersion of Palestinians in the Arab countries. The Palestinians become yet another diaspora people, destined to have their identity as a people absorbed in the wider Arab polity. The security guarantees provided by Egypt and Jordan and their cordial relations with Israel make it possible for Gaza to integrate economically with Israel, and the West Bank with both Jordan and Israel.
(3) The Endlösung scenario. Yisroel Beiteinu becomes the strongest political party in Israel. Following yet another round of violence, Israel escalates its use of force to genocidal levels. Arabs are violently expelled from Gaza and the West Bank as well as Israel proper; millions die, the rest become refugees. Israel is politically and economically isolated, as the rest of the world -- including the USA -- breaks with it. The educated and productive flee it. Its economy crashes. Living standards decline to third-world status. Another political upset ejects Yisroel Beiteinu. The new government puts its leaders on trial; several are executed for crimes against humanity. Consequently, the international community re-established relations with Israel. The reality created by the genocide on the ground cannot be changed, however; Israel is now an almost purely Jewish state. With the ethnic conflict gone, relations with the Arab world will gradually normalize.
(4) The "Did You See A Real Bright Light?" scenario. An international terrorist group acquires a small number of nuclear bombs, and sets them off in the major Israeli cities. Hundreds of thousands of Israelis and Palestinians die, millions are wounded or affected by radiation sickness, and the Israeli polity is destroyed. Most remaining Jews flee the ruins of the country, and the territory is put under temporary UN administration. A new state, composed of the surviving Palestinians and remaining Jews, is established on the terrain currently comprising Israel, the West Bank, and Gaza. It normalizes relations with its neighbors and, over several decades, achieves something approaching normalcy.
(5) The "tick, tock, tick, tock" scenario. Permanent conflict for the next couple of centuries until the higher birth rate of Israeli Arabs turns them into a majority; following this, the Jews are voted out of power, and the West Bank and Gaza are peacefully absorbed into the state now called Palestine, which then joins the Arab League.
Any others you can think of? Which ones do you find are most likely?