Another option is a one state solution. Israel could grant every Palestinian a citizenship and with it a right to vote in national elections. There is zero chance that Hamas will have significant power in a unified parliament, and if they continue acts of terrorism in a unified non-apartheid state they can be tackled with a standard police force.
Basically what Israel shouldn’t do, is continue this current affair of keeping Palestine an occupied territory with accompanying apartheid system.
The two state solution seems like the most likely way forward, but if it was easy it would have happened already. After all, it failed in the 40s, and since then a lot of hate has built up on both sides.
This is different from annexation which would basically mean a surrender for the Palestinians. Israel would continue as is with the current constitution. Palestinians would become Israeli citizens but on the terms of the Israelis.
The thing is “one-state solution” means three different incompatible things: displacement of Israeli Jews, displacement or political suppression of Palestinian Arabs, and a multiethnic, multireligious democracy. You can’t really add up support for all three and call it support for one thing.
two state solution won't be taken off the table, it's just a scare tactic. but even if it were, chance that support for it will skyrocket in Israel is non-existent.
I don’t think it is fair to generalize over such a vast region by making grand statements like “they truly believe...”. In fact most Kurdish autonomous regions were pretty quick to adopt democracy as their system of choise after they liberated them self from the Islamic State terrorist group during the Syrian civil war. And popular pro-democracy uprisings in Yemen would suggest counter to your statement.