So much talk about tiny Israel. Why? The Palestinians are not going anywhere. They are soon going to outnumber the Israeli Jews. In fact they already do, if you include the Israeli Arabs. The current status quo is not durable for Israel long-term. The Israelis know this already.
Not only that 2/3 of all Israeli Jews are ethnically Arabs, no different genetically from their Muslim, Christian, Atheist, whatever, Arab brethren, be they Yemeni Jews, Iraqi Jews, Moroccan Jews etc.
By all accounts, Israel is in many ways already an Arab state. That just happens to be majority Jewish (for now). No need to mention the closeness of Judaism and Islam, the closeness of Arabs and Jews (not called "cousins" for no reason) etc.
Not only that, several Arab states and Israel are meddling ties. In fact I predict that they will be very close allies long-term. Only a natural development.
Arabs and Jews already worked together with great success long before the time of Al-Andalus, the Islamic Golden Age and afterwards as well. Last say 70-100 years of unrest is unnatural when looking at history in a deeper way.