If Israel's Arab neighbors really wanted to destroy it, all they'd have to do is ignore it and watch it eat itself from within. But they, too, need Palestine as a dumping ground for their own violent internal dissenters.
Alternatively, if, rather than arming both sides with missiles and other weapons that help create bloodbaths, everyone instead treated both sides like small children, put a wall around the country, didn't let any new weapons in, and just let them all pummel the crap out of each other until they tired themselves out, maybe both sides would eventually start to act like adults.
The thing is, there's a second part of the problem, which is that at least some parts of the U.S. government seem to see Israel as their proxy in the Middle East, and I get the feeling that Iran and possibly other countries see the conflict as an opportunity to cozy up to Russia by arming the enemy of America's proxy in the Middle East. And as long as both sides are getting armed by people who are more interested in being the friend of the winner than in actually achieving peace, the conflict will continue to rage on.
It's not really a proxy war, per se, because both sides have kind of hated each other since time immemorial, but even though there was always a fire, various world interests have elected to throw gasoline on it, and that makes the problem worse. Were it not for the realization that there's no good way to keep foreign political powers (Iran, etc.) from supporting groups that attack Israel, my inclination would be to believe that the right solution would be to stop arming Israel entirely. After all, if Israel weren't so confident that the U.S. would always have their backs and supply them with whatever weapons they needed no matter what they do, they might just be a bit more respectful towards the Palestinians as a people. But those foreign powers on the other side make that solution problematic.
Either way, I'm glad to see the U.S. being a lot less vigorous in their defense of Israel's missteps as of late, and a lot more critical. I hope this marks a turning point in the relationship between the U.S. and Israel that pressures Israel to stop taking unilateral actions in retribution against Palestine and to instead start asking other nations to help them get things back under control in a manner that complies with international law.
The only practical solution that would actually end the eternal conflict would be genocide of both sides, and all the rest of the middle east, but that's not going to happen (and few would argue that it should).
Genocide, no, but I've been sensing for a few years that a lot of the war hawks in Washington D.C. (mostly people with an "R" by their name) are trying to come up with justification for bombing the crap out of Iran, which might not end the conflict, but would definitely reduce the amount of fuel being added to the fire. I could be wrong about that — it's just a feeling based on what politicians say — but if that happens, I won't be surprised.