Have you ever thought of what the end state would be in either outcome?
The Israeli end state seems better IMO than the alternative. The current state obviously worse than those two fictional single state ends.
The Israelis are winning because they cultivate a better culture and have established highly coupled international relationships
We already had international relationships with many countries in that region. If anything our ties to Israel has soured our relations with other Middle Eastern and Arab countries. The Israelis winning didn't cultivate a better culture at all, all the Israelis did was "steal" the culture of the land. They claim food like falafels and hummus are theirs, two hilarious examples.
Israel only inflamed situations forever. If Israel had failed in the beginning, or the Zionist project never began in the first place the world would be a better place. Not just for the Arabs, but for the Jewish people too, whether it be in Palestine or in the diaspora.
There would be no 9/11, there would be no desert storm, there would be no "war on terror" because all of these are a direct or partial result of Israeli aggravation.
On top of all this radical Islamist groups would be far less prevalent, because as the American neo-cons and Israelis have stated the goal has always been to prop up far-right Islamist rebels whilst the Arabs were actively working toward a secular, socialist coalition. The reason they do this is because it's easier for Israel and America to make enemies out of Islamic extremists than it is the alternative. Netanyahu has been recorded talking about this strategy in use when referring to the west and Israel.