In the face of the now-widely-proclaimed death of U.S.-led peace efforts, the latest Palestinian debate (beyond one state vs. two) is:
(1) whether to move, in the United Nations (Security Council and General Assembly) to secure full membership + recognition for the State of Palestine (this is the position of the two-staters, including the current Palestinian leadership), or
(2) to disband Palestinian Authority, and make Israel face up to its costly responsibilities as occupier (this is the position of those Palestinians who are furious and fed up with false negotiations and who believe in continued resistance — though it will surely cost the Palestinians dearly).
But, for Palestinians, the Israeli refusal to extend its unilateral ten-month settlement “moratorium” is the reason for the failure of American efforts to restart negotiations.
Israelis say, in riposte, that Palestinian “preconditions” undid any deal.
There is considerable Israeli commentary this week to the effect that Palestinian moves to seek recognition + UN membership are only “empty threats to squeeze concessions from Israel”. The energy being put into public argumentation against this strategy to legitimize a Palestinian state, however, belies the claim that it is an empty threat.