You're presenting that dichotomy, not me. I'm sure they have plenty of possible courses of action. I'm just trying to say that it's not obvious to me that they actually want a state, and if they don't then there's not much Israel can do about the situation.
Interesting idea! How do you think it would turn out? You might like to reference in your answer the time in 2005 when Israel did exactly that, and the consequences that occurred on Oct 7 2023.
