I have a strong aversion to discussing Current Thing, but decided to put forth a few thoughts on the situation in Israel.
The Abstract View
Imagine this as a general scenario happening in any earlier period of history: Polity A exists as a narrow strip of land mostly surrounded by the borders of Polity B. Polity B is larger, wealthier, and militarily more powerful than Polity A.
My bet over the long term would be that Polity A gets absorbed, by hook or by crook, into Polity B. The main question would be whether it gets absorbed on relatively peaceful and voluntary terms, maybe retaining some local autonomy and cultural distinctiveness.
If we add that these two polities are bitter enemies, and that, in fact, the border between them is a wall policed by Polity B because the government of Polity A is dedicated to killing them — well, peaceful sure seems less likely.