Hussein Ibish sees the logical next step toward a two-state solution:
With diplomacy in disarray, the importance and indispensability of state building, as the only real source of practical momentum at the moment, is increasingly obvious. On the diplomatic front, Palestinians were blocked from entrenching their position in the UN by the United States, but have succeeded in securing recognition from Brazil and Argentina, with Uruguay and several other states expected to follow. State building is practical and strategic, but increased international recognition for Palestine is important as well. Unilateralism is probably a dead end, but multilateralism isn't necessarily anything of the kind. Palestinians would be foolish not to understand that in the end Israeli opposition will make it practically impossible to establish and maintain a viable, sovereign and independent state of Palestine. But Israel would be foolish not to understand widespread international recognition of Palestine's legitimacy and existence has very significant consequences as well.
(Hat tip: Goldblog)